Nvidia in focus as KeyBanc, Susquehanna raise PTs ahead of earnings

[Nvidia headquarters in Santa Clara, California, USA]
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Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) was in focus on Wednesday as investment firms KeyBanc Capital Markets, Susquehanna and HSBC raised their price targets on the Jensen Huang-led company ahead of its quarterly earnings report on Aug. 27.

Shares fell 3.5% in late morning trading.

“We expect NVDA to report strong F2Q (Jul) results and guide F3Q (Oct) slightly below [consensus], as we expect NVDA's outlook to exclude direct revenue from China given pending license approvals and uncertainty on timing,” KeyBanc analyst John Vinh wrote in a note to clients. “If NVDA were to include China in its guidance, we believe it would contribute an [incremental] $2-3B in revs, given H20 and the RTX6000D (B40).”

Vinh reiterated his Overweight rating and upped his price target to $215 from $190.

Susquehanna analyst Christopher Rolland also upped his price target, moving to $210 from $180 and maintained his Positive rating on the stock.

HSBC also raised its price target, going to $200 from $125, but noted there are “uncertainties” around its position in China.

“The AI GPU [total addressable market] is now bigger than our previous expectations from ongoing CSP capex revisions of 37% year-to-date, as well as a focus on enterprise and sovereign AI end markets,” analysts at the firm wrote in a note to clients. “The market has also become more constructive on the China market from the resumption of H20 licensing. However, we believe China AI GPU [total addressable market] uncertainties remain and could disappoint the market, given lower ASP due to revenue sharing with the US administration, as well as a push back on using US chips from the Chinese authorities.”

A consensus of analysts expect [https://seekingalpha.com/symbol/NVDA/earnings/estimates?period=quarterly] Nvidia to earn $1.01 per share on $45.92B in revenue for the coming quarter.

_(This story has been updated with added commentary from HSBC.)_

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