NVIDIA Corp (NVDA)

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Bank of America Warns Nvidia May Have to Cut Guidance Again to Drive Necessary Reset
By: Investing.com | August 17, 2022

A Bank of America analyst sees the potential for another guide-down from Nvidia (NASDAQ:NVDA) next week.

The analyst sees downside risk in the current consensus for the Q3 outlook. A guide-down would be “unwelcome” but he admits that it might be necessary to clear decks.

“This 'second cut' could clear the decks ahead of the upcoming new 5nm gaming (Lovelace) and data center (Hopper, Grace) pipeline,” the analyst wrote in a client note.

The analyst is especially worried about the Q3 revenue guidance, which may call for sales between $6 billion and $6.5 billion, lower than the consensus of $7 billion to $7.5 billion.

As far as the data center revenue is concerned, he expects “flattish” revenue growth QoQ “or down slightly on supply headwinds.”

“We currently forecast NVDA FY24/CY23E data center at $17.8bn, 16% YoY, below street’s implied 18%-21% YoY forecast and well-below our original 30-40% YoY expectation from a few months ago.”

All-in-all, Bank of America analyst remains positive, especially ahead of the Fall 2022 GPU Tech Conference (GTC), which is scheduled for Sep 19-22, as it could act as the next product news catalyst.

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