© Reuters. NVIDIA target lifted at CFRA as investors are ‘underestimating software revenue potential’
The NVIDIA (NASDAQ:) price target was raised to $700 from $00 at CFRA Research on Tuesday, with analysts maintaining a Buy rating on the stock.
Analysts told investors in a note that they are keeping their FY 24 (January) EPS estimate at $12.29 but increasing the FY25 estimate to $20.58 from $17.85 and FY26 to $23.76 from $21.18.
“Our higher estimates largely reflect data center growth prospects, driven by new product offerings (H200 in H1 and Blackwell in H2), higher price points, and emphasis to reduce the cadence of GPU launches,” wrote the analysts.
“We see 15%-20% upside to the quarterly revenue run rate exiting CY 24, with momentum on both the CPU and networking side aiding growth,” they added. “In addition, NVDA’s ability to gain approval to ship performance tempered GPUs (H20, L20, L2) into China limits downside risk to the region for now.”
Furthermore, the firm thinks investors are underestimating software revenue potential, revenue upside tied to edge computing devices over time, and the company’s ability to expand its addressable market/return cash to investors given free cash flow potential.
This story originally appeared on Investing
