Nvidia (NVDA) is likely to report “a notable but more measured” 3% to 5% or $500 million to $1 billion improvement in both reported Q4 and guided Q1 revenues, BofA Securities said in a Thursday note. The results are due on Feb 21.
BofA analysts, including Vivek Arya and Blake Friedman, pointed to incremental supply gains offset by China restrictions and some transition effects prior to B100 accelerator launch planned for the second half for the improvement.
“While a 3-5% beat would pale vs. the 10%/22% beat/raise of prior quarters and perhaps disappoint some bulls, the more measured pace will also be seen as creating more fertile ground for continued growth in CY25 and beyond,” the analysts said.
BofA reiterated its buy rating on Nvidia while raising its price objective to $800 from $700, saying that valuation is compelling.