Nvidia rises after 70% revenue forecast for next fiscal year
NVDA•Brokerage raises price target
Melius Research raised its price target by $20 to $420, citing confidence in the AI buildout and the company's ability to capture a leading share of the market opportunity.
The brokerage said, "Nvidia is just too cheap for a 70%-plus grower", regardless of views on its investment strategy, which is arguably the envy of Silicon Valley venture capital and hedge fund investors.
Shares rise after upbeat revenue outlook
Shares of Nvidia NVDA.O rose 5.9% to $222.08 premarket after the chip company on Wednesday forecast a 70% jump in revenue next fiscal year, underscoring unabated demand for AI computing, while warning that shortages of memory components would continue to curb how quickly it can expand.
Quarterly revenue forecast tops estimates
The company forecast Q3 revenue of $108 billion, plus or minus 2%, compared with analysts' average estimate of $104.19 billion, according to data compiled by LSEG.
