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Analyst Warns Of Timing Issue With Nvidia's Datacenter Launch, But Remains Bullish

Elizabeth Balboa

NVIDIA Corporation (NASDAQ: NVDA) has had a tumultuous year, but one analyst team sees reason for optimism.

The Rating

Raymond James analysts Chris Caso maintained a Market Outperform rating with a $180 price target.

The Thesis

The analysts’ channel checks, including for the GeForce gaming GPU and 2080 Ti boards, reinforced third- and fourth-quarter expectations.

“Importantly, suppliers indicated there were no quarter-end deals, and no push for revenue late in the quarter — historically, suppliers say NVIDIA will typically make quarter-end deals if sales are running below expectations, and the lack of this activity should be taken as an encouraging sign,” Caso and Fairbanks wrote in a note. They consider the lack of deals a positive sign for the gaming business.

Notably, the channels lacked any indication of an imminent launch of the 7-nanometer datacenter product. As a result, Raymond James expects a product launch in the first or second quarter of 2020 instead of the current quarter.

Caso said, however, that the "difference of a few months naturally doesn't change our longer term view.. but the timing could have an impact on quarterly results."

Price Action

At time of publication, Nvidia shares traded up 1.4% at $210.50.

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Analysts Upbeat On AMD's Product Roadmap, Execution

Analysts Like Nvidia's EGX Edge Supercomputing Platform, 5G Opportunity

Latest Ratings for NVDA

Date Firm Action From To
Oct 2019 Maintains Outperform
Oct 2019 Maintains Buy
Oct 2019 Maintains Buy

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings


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