He has an overweight rating and $235 price target on the shares. “These trends, along with the AI and Omniverse momentum, keep us optimistic about the future.” “We truly believe Nvidia’s data center business should normalize shortly, while gaming growth should start next year,” Kumar wrote. He highlighted that Nvidia seems to be “taking the tough medicine in gaming” but that its management team expects a normalization in gaming inventory by year-end. “We feel like the October quarter should mark the revenue bottom for Nvidia,” Piper Sandler analyst Harsh Kumar wrote in a note to clients.
Specifically, a key debate on Wall Street concerns whether Nvidia’s stock has been “de-risked,” or made safe again, after management’s moves to realign expectations. The company’s downbeat revenue forecast, which came in nearly $1 billion shy of the FactSet consensus, wasn’t particularly surprising on Wall Street, seeing as Nvidia had already telegraphed its challenges in gaming when it preannounced a sharp revenue miss for the latest quarter earlier in August.īut while analysts weren’t optimistic headed into Nvidia’s most recent report, questions now turn to the future.
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