NVIDIA Corp (NVDA)

[John-Knee]

NVIDIA to Surpass Fiscal Q2, Q3 Projections as Gaming Drives Revenue Growth into H2, Oppenheimer Says
2021-08-12 03:00:43 PM ET (MT Newswires)
   
   
03:00 PM EDT, 08/12/2021 (MT Newswires) -- NVIDIA (NVDA) likely will surpass analyst estimates for Q2 and Q3 amid ongoing supply constraints and "lean" channel inventories, Oppenheimer said in a note to clients Thursday.

The firm projected Q2 earnings of $1.03 a share and Q3 EPS of $1.08 a share. Analysts polled by Capital IQ are expecting Q2 EPS of $1.02 and Q3 earnings of $1.04 a share.

"Despite constraints, we see gaming leading F2Q growth with continued momentum into 2H led by new gaming titles, back-to-school, and holiday," the firm said. "DC demand accelerates into 2H with hyperscale spending and it increasingly favors Al neural network workloads (and) services."

Oppenheimer said it expects full-year 2022 EPS at $4.10 and 2023 earnings of $4.76 a share. The Street sees 2022 earnings of $3.95 a share and 2023 EPS of $4.35.

On NVIDIA's planned acquisition of ARM, the firm said it favors the strategic nature of the purchase but cautioned that "regulatory hurdles remain."

Oppenheimer maintained its outperform rating on the company with a price target of $235.

Shares were up 1.4% in late-day trading.