© Reuters Goldman Sachs expects NVIDIA (NVDA) to report strong results and guidance
Ahead of NVIDIA’s (NVDA) third-quarter earnings release scheduled for November 21, analysts at Goldman Sachs reiterated a Buy rating and $605 price target on the stock.
The analysts told investors they expect NVDA, which is one of the names on the investment bank’s Americas Conviction List, to report strong FY3Q results and FY4Q guidance.
In addition, they see the company’s management posting constructive forward-looking commentary, which will reinforce the bank’s bullish view of the stock.
“We expect Nvidia’s FY3Q (October) results and FY4Q (January) outlook in its core Data Center segment to illustrate the ongoing shift in wallet share away from general-purpose compute (i.e. CPU) in favor of accelerated computing (i.e. GPU),” the analysts said.
“While we do expect the pace of this shift toward accelerated computing to moderate and spending on traditional compute by the cloud hyperscalers, in particular, to pick up modestly in 2024, we expect
accelerators to continue to gain share over the medium- to long-run as AI proliferates across various verticals and data center workloads grow in complexity,” the analysts added.
Furthermore, Goldman Sachs sees Nvidia (NASDAQ:) maintaining its position as the industry standard, given its robust hardware and software offerings and the pace at which it continues to innovate.
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