NVIDIA (NASDAQ: NVDA) Stock Price Target Hiked by a Whopping 50 Percent by BMO Capital as the Company Gears up to Announce Q1 2022 Earnings

NVIDIA (NASDAQ:NVDA) has been riding a wave of euphoria lately, buoyed by an increase in hyperscale demand and the growing ubiquity of cloud-based solutions amid spatial distancing measures instituted to dampen the spread of the coronavirus (COVID-19) pandemic. Consequently, as NVIDIA gears upwards to report its Q1 2021 earnings on the 21st of May, financial analysts have been expressing bullish opinions regarding the company's prospects.

Today, BMO Capital (TSE:BMO) analyst Ambrish Srivasta raised NVIDIA's stock price target past a whopping 49.12 percent to $425 from $285, translating to an upside potential of 21.76 percent relative to the electric current price of $349.04, as of ten:52 a.chiliad. ET. The analyst observed in his investment note:

"While no one single consequence drives the change in thinking, the company's continued execution on the datacenter side, along with the latest product rollout, warrants a more than positive opinion on the shares."

Srivasta went on to comment that:

"[NVIDIA is] uniquely positioned to continue to benefit from a massive shift in the compute landscape."

Moreover, co-ordinate to the BMO analyst, NVIDIA can "abound its datacenter business to at to the lowest degree a $20B annual run rate versus the $4.8B for this year." Consequently, the analyst believes that the company tin can grow its EPS to a whopping $20 per share over the long-term.

NVIDIA's upcoming earnings announcement continues to spur analyst upgrades. Equally a case in indicate, Deutsche Bank (ETR:DBK) analyst Ross Seymore raised NVIDIA'southward stock price target today to $300 from $290 while retaining a 'Hold' rating for the stock. Seymore believes:

"[NVIDIA's reported earnings and guidance] would be strong in normal times, and likely even more impressive in light of the current pandemic."

Consequently, the analyst increased his long-term EPS estimate to $9 per share, reflecting the touch of Mellanox's acquisition that "could be as much equally 5%-8% accretive to earnings" for NVIDIA.

For Q1 2021, Zacks consensus estimate for NVIDIA's revenue is currently pinned at $two.99 billion, translating to yr-over-year growth of 34.9 percent.

(All figures are in billions of dollars)

Similarly, Zacks consensus EPS approximate is currently pegged at $1.69, alluding to a year-over-year increase of 92.i per centum. Deport in heed that NVIDIA has browbeaten consensus EPS estimates in all 4 previous quarters, surpassing the expectations past an average of 10.6 percentage.

(All figures are in dollars)

Autonomously from the force in hyperscale and cloud spheres, NVIDIA is expected to accept benefited from a number of AAA gaming titles that at present support its RTX Ray Tracing applied science. Moreover, the GeForce RTX SUPER GPUs are as well expected to have boosted the visitor'southward top-line metric. However, sales channel disruptions due to the coronavirus-induced lockdowns may have moderated some of these gains. In improver, NVIDIA's automotive segment is expected to have taken a hit during the quarter.

Even equally a plethora of companies curtailed their expenditures amid the ongoing macroeconomic weakness, NVIDIA chose to maintain its recent acquisition spree. For case, the company officially completed its acquisition of State of israel'due south Mellanox Technologies on the 27th of April, capping an backbreaking procedure that spanned over 13 months. Moreover, on the 4th of May, NVIDIA alleged that it was buying the open networking software company, Cumulus Networks, for an undisclosed amount.

Twelvemonth to date, NVIDIA's stock has generated returns of 44.34 percent, corresponding to a market capitalization of $206.83 billion. For comparing, the broader South&P 500 index has generated a render of -8.67 pct during the same timeframe.

Source: https://wccftech.com/nvidia-nasdaq-nvda-stock-price-target-hiked-by-a-whopping-50-percent-by-bmo-capital-as-the-company-gears-up-to-announce-q1-2021-earnings/

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