Nvidia CEO Jensen Huang is scheduled to speak at the Siggraph conference in Denver later this week.
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Meanwhile, Citi analyst Atif Malik has placed Nvidia on what the bank calls a “positive catalyst watch” over the next 30 days ahead of this weekend’s SIGGRAPH conference, an annual event focused on computer graphics and interactive technology.
‘Very’ bullish on semi-finals
“We remain very bullish on semiconductors,” Citi analysts wrote in a separate note. “We met with investors in New York and Connecticut last week, with Nvidia being our most favored stock, with Broadcom following suit.”
Reiterating his Buy rating and $150 price target on Nvidia, Malik said CEO Jensen Huang and Meta Platforms (META) CEO Mark Zuckerberg will likely discuss the future of AI technology, which he expects will provide potential insights into how Nvidia’s customers will monetize billions of dollars in capital expenditures, “a hot topic for investors recently.”
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Related: Analysts reset Nvidia stock target as chip sector review continues
Hyperscalers like Meta, Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) are set to spend roughly $92 billion this year alone building out massive computing infrastructure.
The investment reflects a push by clients to leverage massive data sets to improve sales of everything from drive-thru dining to the most complex pharmaceutical tests.
“We expect to hear talk at the conference about accelerating AI demand trends with no signs of an air pocket, and view the recent stock sell-off due to geopolitical concerns as a buying opportunity,” Malik and his team wrote.
Blackwell’s “air pocket” concerns
Analysts had worried that the gap between the current H100 chips and Blackwell’s new products would create a “hole” in revenue as customers canceled orders for the old chips and waited for the new systems.
Nvidia shares rose 2.06% in premarket trading to open Monday at $120.36 per share.
Other AI strains:
Nvidia is scheduled to report second-quarter results on Aug. 28, when investors are expecting earnings of 64 cents per share on revenue of $28.47 billion.
Related: Analysts reassess Nvidia stock target following Blackwell research
Nvidia told investors in May that its second-quarter revenue would rise to about $28 billion, with a 2% margin of error, even though systems using Blackwell’s processors and software wouldn’t start shipping until late 2024.
“We see positive momentum for Nvidia ahead of the company’s July quarter earnings release and October quarter guidance,” Piper Sandler analyst Harsh Kumar said in a note on Monday, raising his price target on the stock by $20 to $140 per share.
“We expect demand to outstrip supply once the B100/B200 launches,” he added. “In our bull case, we see Nvidia posting revenue gains of over $2 billion in the July quarter, helped by a recovery in network supply.”
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