Semiconductor giant $NVIDIA Corp(NVDA)$ is expected to release its financial report for the fourth quarter of fiscal year 2023 on February 22, after the U.S. stock market closes. Nvidia’s stock price has risen by 46% this year.
The recent explosion of Chat GPT has driven the development of AI related stock price. According to Citigroup estimates, ChatGPT will likely drive the sales of Nvidia-related products to US$3 billion to US$11 billion within a year.
However, because of the plunge in digital assets last year, Nvidia lost a significant boost from the repurposing of its graphics semiconductors for mining ether, which also made analysts' fourth-quarter earnings expectations for Nvidia relatively flat.
According to Bloomberg's consensus forecast, Nvidia's fourth-quarter revenue is $6.021 billion, adjusted net profit is $2.005 billion, and adjusted EPS is $0.813. A total of 51 analysts rated Nvidia, 36 of them gave buy ratings, 12 gave hold ratings, and 3 gave sell ratings, with an average target price of $219.93.
📓Analyst Opinion
Bloomberg analysts said that the $Advanced Micro Devices(AMD)$ AMD's results suggest that data-center capital spending from hyperscale cloud vendors for accelerators and graphics processing units has been resilient, while the viral adoption of ChatGPT has raised expectations for Nvidia's sales growth. That could help drive average selling prices for the data-center segment even if sequential unit growth is below consensus. The gaming segment may remain pressured as inventory correction in consumer PCs limits demand for Nvidia's graphics chips. We believe a top-line recovery in gaming is unlikely through 1H and possibly 2H amid the chance of a broader economic slowdown.
Export restrictions for China still pose a risk for near-term negative revisions, given Nvidia's higher exposure than rivals to advanced chip sales.
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