After the most bleak period of Nvidia Corp.'s new history, the company has promised a big rebound in Thursday's earnings report.
However, analysts are not so sure. The company's prospects for the whole year look "ambitious" and "extremely challenging," according to Christopher Roland of Susquehanna, as it suggests that the company can raise revenue by an average of 17% in the last three quarters of fiscal 2019 demand for games and data costs in the current period
While Roland believes Nvidia's vision of the laser landscape is "reasonable," he is disappointed with the company's comments about the data center business. He kept a positive rating for the share, but raised his price to $ 1
NVDA, + 2.72%
shares rose to $ 163.86 on Friday morning trading, a 6% advance after revenue reporting that beat expectations, albeit just because two discount estimates significantly reduced those expectations. Despite the forecast for the first quarter of the financial quarter, which requires another sharp drop in sales from the previous year, the company predicts that revenue for the year will be equal or will only fall slightly.
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Berndstein's Stacey Rangsson said the company "has tried to offer some comfort" with her perspectives and comments but has not yet been sold.
"Nvidia tried to provide some visibility through a full annual revenue guide (flat for a while a year)," he wrote in a customer note. "But this means that the games go over 1.4 billion dollars over the year, and actually are considerably higher than last year's tops, even without hundreds of millions of dollars of crypto / channel
to the information center segment, Rasgon said Nvidia's discussion of the prospect implies "a sharp slowdown and impact on the growth story, which is the main reason you own  Rasgon lowered his price to $ 165 from $ 175 after the report. the value of its shares on the market by a better result and from the previous week
Others were more optimistic, CJ Muse of the ISI, which estimates its share price at $ 200. "With many questions after Nvidia announced a negative release on January 28, the conference did not disappoint .
Muse was encouraged from the point of view of managing the game trajectory, including that the company would be able to work through stock-adjustment problems in the April quarter and then be able to show growth even without crypto-benefits. He said data from Nvidia data centers in January-quarter are better than concerns, while the company's outlook for the segment is "optimistic."
Wells Fargo analyst Aaron Rakers said the company will "remain a proof story" as it seems to make a full recovery. "While we believe it is too early to believe Nvidia's upcoming comment will inspire confidence in Nvidia's return to an upward momentum … we maintain our superior assessment, as we think 1Q19 can be a major bottom with exhausted inventories of gaming channels. and potentially (2H2019) recovery in the data center, "he writes.
Rakers has a pricing price of $ 170 on the stock exchange.
At least seven analysts have raised their price levels for Nvidia shares after the report, according to FactSet, while three have lowered their targets. Of the 37 analysts tracked by the Nvidia service, 23 have buyers, 11 have ratings and 3 have ratings for sale. The average target price is $ 178.58, 11% above current levels.
Nvidia shares have lost 21% over the past three months, while the PHLX Semiconductor Index
SOX, + 0.49%
has increased by nearly 10% and the S & P 500
SPX, + 0.85%
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