Morgan Stanley released a research report raising the target price for NVIDIA (NVDA.US) by 6%, from US$160 to US$170, maintaining an Overweight rating. The broker stated that NVIDIA's revenue for the quarter ending in April reached US$44 billion (a QoQ rise of 12% and an YoY rally of 69.2%), topping market expectations of US$43.349 billion and the broker’s estimate of US$42.213 billion.

During the period, NVIDIA's gross margin came in at 60.5% (71.3% excluding H20 inventory costs), below the market expectation of 71.1% but above the broker’s estimate of 57.8%. Non-GAAP EPS was US$0.81 (US$0.96 excluding H20), below the market expectation of US$0.93 but above the broker’s estimate of US$0.71.

Without H20 restrictions, NVIDIA expected July quarterly revenue to increase by US$6.5 billion, reaching a median of US$53 billion. Including the impact of restrictions, guidance was US$45 billion (a QoQ increase of 2.1% and an YoY elevation of 49.8%), below the market expectation of US$47.948 billion but above the broker’s estimate of US$42.213 billion, with data centers remaining the largest contributor to growth. The company guided for a gross margin of 72%, above the market expectation of 71.5% and the broker’s estimate of 71.2%.
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AASTOCKS Financial News
Website: www.aastocks.com

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