Benefit from a revolutionary technological change

There is a lot of hype these days about the potential of AI. Fueled by the rise of ChatGPT and the ensuing race for AI dominance, the entire big tech gang wants a piece of the action.

According to Rosenblatt analyst Hans Mosesmann, there is no danger that the opportunity will be overstated. In fact, the 5-star analyst knows exactly which company is best positioned to benefit most from this tremendous development.

“We see Nvidia (NASDAQ:NVDA) “We are driving the greatest technological shift the world has ever seen, in transformative AI everywhere and in everything,” said Mosesmann. “CEO Jensen Huang’s AI vision openly coincides with Intel’s seemingly structural secular decline and signals a changing of the guard in Silicon Valley for a generation of semiconductor world leaders.”

Mosesmann’s comments come ahead of the chip giant’s report for the first quarter of fiscal 2024 (April quarter), which the company will release on May 24. Mosesmann expects the company to match or slightly better than St.’s expectations – consensus expects revenue to negatively impact $6.5 billion and company to grow +/- 2% The Street calls for non-GAAP GMs (gross margins) of 66.5%, which is above Nvidia’s benchmark of ~65.3% +/- 50 basis points.

The analyst cites the expansion of the Hopper H100 data center, “solid gaming trends (Ada Lovelace) and stable networking” as reasons for the optimistic forecast.

Looking ahead to the July quarter, Mosesmann believes Nvidia’s revenue guidance will be around $7.10 billion, just ahead of Street’s $7.09 billion. However, at the other end of the spectrum, Mosesmann expects non-GAAP EPS of $1.04 — slightly below the consensus estimate of $1.06.

All in all, there is no change to Mosesmann’s buy rating or his price target of $320. There is a potential upside of 13.5% from current levels. (To see Mosesmann’s track record, Click here)

Now let’s turn to the rest of the street, where a total of 38 analysts with NVDA ratings have tipped their hats over the last three months. These break down into 30 buy, 7 hold and 1 sell, all leading to a consensus rating of Strong Buy. However, given that shares are up 93% year-to-date, the median target of $288.24 implies a modest 2% upside potential. (See Nvidia Stock Forecast)

The story goes on

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.