HSBC Raises Nvidia Stock Price Estimate on High Server Pricing By Investing.com

HSBC Raises Nvidia Stock Price Estimate on High Server Pricing By Investing.com
HSBC Raises Nvidia Stock Price Estimate on High Server Pricing By Investing.com

A team of HSBC analysts raised their price target for Nvidia (NASDAQ:) stock on Friday, attributing the rise to significant growth potential from the company’s ability to price its NVL server arrays (Nvidia Virtual Link) in fiscal year 2026.

“We expect Nvidia to maintain its strong pricing power with its NVL36/NVL72 server rack systems and GB200 platform, which is expected to exceed market forecasts in fiscal year 2026,” the company said. analysts in a report, raising the 12-month target price for NVDA from $1,050 to $1,350.

Previously, HSBC highlighted that Nvidia’s 2025 AI product plan could result in significant pricing benefits, with the average price of GB200 being between $60,000 and $70,000, while the average price of GPU B100 is $30,000-$35,000.

Analysts are now more confident in Nvidia’s economic outlook, predicting that the company could reach revenue of $196 billion for fiscal year 2026.

This forecast is based on average prices of $1.8 million for the NVL36 and $3 million for the NVL72 server racks, with an expected sales volume of 35,000 units.

Nvidia plans to announce its fiscal 2025 first-quarter results in May 2022, and analysts predict the company will achieve $26 billion in revenue, exceeding both the company’s forecast of 24 billion and the consensus projection of $24.5 billion.

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They estimate second-quarter revenue to reach $28 billion, which would beat the consensus forecast of $26.8 billion. Nonetheless, FY 2025 is considered a transition year, with expectations of reduced chip-on-wafer (CoWoS) substrate capacity shortages in the second half of 2024 due to increased supply and postponement of the introduction of product B100.

“Therefore, we expect a limited opportunity for significant earnings growth over the next two quarters ahead of the launch of its B100 & GB200 products in Q4 2024,” the analysts commented.

This article was produced and translated with the help of artificial intelligence and reviewed by an editor. For more details, see our terms and conditions.

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