Also, he retained his Buy recommendation on NVDA stock. Gill lowered his near-term estimates but kept his FY24 estimates unchanged. In response to NVDA’s weak preliminary Q2 announcement, Needham analyst Rajvindra Gill stated that “the street may be buying into the “kitchen sink” narrative,” which implies revealing all the bad news in one go. Further, the momentum in the data center and NVDA’s AI (Artificial intelligence) capabilities could continue to support its growth. While the shortfall in revenue and margins from the previous outlook is worrying, analysts believe that bad news is already out. While data center revenue improved sequentially and year-over-year, it came somewhat lower than NVDA’s projection due to the supply chain disruptions.Īlong with sales, NVDA announced a preliminary adjusted gross margin of 46.1%, drastically lower than its outlook of 67.1%. NVDA’s CEO, Jensen Huang, said, “Our gaming product sell-through projections declined significantly as the quarter progressed.”
The significant cut reflects lower sell-in of gaming products due to macro headwinds. NVDA announced preliminary Q2 revenue of $6.70 billion compared to its guidance of $8.10 billion. Despite the noteworthy reduction in sales and margins, the NVDA stock forecast on TipRanks shows that Wall Street continues to be optimistic about its prospects, given its AI and data center leadership and attractive valuation. Nvidia ( NASDAQ:NVDA) pre-announced its Q2 financials that were significantly lower than its previous guidance.
0 kommentar(er)
