Its news. The consolidation phase that began two months ago seems to have been beneficial for the stock Nvidia which particularly shone in the first two sessions of the year with a cumulative gain of more than 7%.
It could line up a third consecutive session of increase, while the president, Jensen Huang, will undoubtedly give details this evening on the progress of business at the CES in Las Vegas. And perhaps also reassure about the prospects of the new generation of Blackwell chips whose debut has been hampered by requests for modifications to suppliers.
News from the Taiwanese electronics giant, Foxconn, already seem to indicate that the demand for chips Nvidia remain supported.
In December alone, Foxconn sales jumped 42.3% to $654.8 million, a record, and management expects further very significant growth for the first quarter of 2025, notably thanks to to the division of cloud and network products used in artificial intelligence servers.
Good news for Nvidia which will publish its annual results on February 26. For his part, Microsoft also sent a positive signal by indicating that it wants to spend this year around 80 billion dollars on data centers necessary for the deployment of generative AI models and applications. Enough to allay fears of a slowdown in this market.
Credible expectations
Our analysis. Investors’ expectations regarding Nvidia remain high but still credible in view of the sustained investments devoted to artificial intelligence. The group had announced for the last quarter of 2024 a slightly weaker sequential growth forecast for its turnover than in the previous quarter, with a slightly lower gross margin (73% compared to 74.6% in the third quarter and 75 .1% to the second).
However, the consensus gathered by Factset still expects an increase of more than 50% in profit for the 2025 financial year and again 20% in 2026, which would bring the valuation back to more affordable levels (26 times the expected profits in 2026), while the cash position could reach $87 billion at the end of this year.
Our advice
- Keep [NVDA]. Objective : 180 dollars
- Profile : dynamic
- Next meeting: February 26, 2025, annual results.
Swiss
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