sanctions, which could be a catalyst for a return to growth in these areas. He said that the company is working to bring new semiconductor offerings to regions affected by U.S. Zino maintained his “buy” rating and $600 price target on Nvidia stock after earnings. And he reiterated his strong feelings this week, saying: “AI will lead the new tech bull market, which we believe is already well underway with bears now heading back into the dark caves for hibernation.”Īngelo Zino, VP and senior equity analyst at CFRA Research, is another Nvidia bull who liked what he saw on Tuesday.

Ives has long argued that we’re in the middle of the “AI gold rush,” comparing the new technology to the birth of the internet. “A key theme from this tech earnings season has been that AI monetization has begun to positively impact the tech sector.” “The AI revolution is accelerating into 2024 for the broader tech sector,” he wrote in a Tuesday note to clients. Wedbush’s Ives argued the third quarter earnings release was “another jaw dropper,” and the strong guidance was “heard around the world.” Nvidia’s impressive earnings figures and confident standing certainly impressed Wall Street’s tech bulls.

“Large language model startups, consumer internet companies, and global cloud service providers are the first movers. “Our strong growth reflects the broad industry platform transition from general purpose to accelerated computing and generative AI,” CEO Jensen Huang said. But Kress quickly added that she believes the lost sales will “be more than offset by strong growth in other regions” moving forward.Īfter seeing monumental revenue growth in the third quarter, Nvidia’s management was decidedly bullish on the earnings call. “We expect that our sales to these destinations will decline significantly in the fourth quarter,” Nvidia’s CFO, Colette Kress, admitted in the company’s earnings call Tuesday. government’s export controls on certain Nvidia chips will slow sales in affected regions-including China, Vietnam, and parts of the Middle East-which in total make up between 20% to 25% of Nvidia’s surging data center revenue.

And with revenue growth being so critical to Nvidia’s robust valuation, the stock could be falling as a result of this slight misstep in revenue guidance amid U.S. semiconductor export controls on China, Vietnam, and other nations that likely sparked the pullback in Nvidia’s stock Tuesday, not the company’s valuation.Īlthough Nvidia increased its fourth quarter revenue guidance to $20 billion, Deepwater Asset Management’s Munster explained that there was a “whisper number” on Wall Street that indicated it could be even higher.

If you ask the bulls, it was a stern headwind on revenue guidance from U.S. “Investors who want to invest in the artificial intelligence space should consider companies that benefit from the same tailwinds as the popular AI stocks but have not yet seen their stock prices take off, such as Vishay Intertechnology Inc. Although there is strong demand for Nvidia’s chips and the third quarter earnings report was largely positive, the stock’s valuation just remains “outrageous and far from sustainable,” according to Trainer, who argued investors should avoid Nvidia shares until prices fall below $150 per share.

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