NVIDIA Corp (NVDA)

[rolvram]

NVIDIA $NVDA initiated with new Street high price-target of $1,200 at Loop Capital:

"Initiating Buy and $1200 PT (implying +63% upside) as we believe not only is there material upside to Street estimates in CY2024/FY2025 & CY2025/FY2026, but that we are at the front end of a 3 - 5 year GPU compute & Gen AI foundational build across Hyperscale.

Nvidia's biggest customers are ready to take everything NVDA can give them in 2024 and 2025.

Hyperscalers are transitioning towards utilizing 50% to 60% GPU compute, a significant jump vs. the current 10%.

This harkens us back to hues of the internet buildout where adoption/buildout went up 5x (up to 60% saturation) from 1995 – 2001.

Expected growth in IT spending is forecasted at 5-8% in 2024, compared to 5% in 2023, and the usual 3-5%, with a notable rise in infrastructure spending from the typical 30% to 45%.

This is coming from the Fortune 1000 realization that they need to move more data into the Cloud to (say 60% - 80% vs prior plans of 30% - 40%... and currently at 15% - 20%) not only take advantage of Gen AI, but to be able to run the key applications of the future."