Nvidia (NVDA) delivered another beat and raise with its fiscal Q4 results as artificial intelligence demand is surging across several customer sets, BofA Securities said in a note to clients on Thursday.
BofA raised Nvidia’s price target to $925 from $800 and kept the buy rating.
The chipmaker reported fiscal Q4 non-GAAP earnings late Wednesday of $5.16 per diluted share, up from $0.88 a year earlier. Analysts surveyed by Capital IQ expected $4.64. Revenue in the quarter jumped to a record $22.1 billion from $6.05 billion a year earlier. Analysts expected $20.6 billion.
“Perhaps the most important new datapoint in NVDA’s earnings call was that AI inference contributed nearly 40% of AI computing mix in FY24/CY23,” BofA said. “AI inference is correlated with revenue bearing AI which is supposed to be more competitive, as opposed to AI training which NVDA already dominates.”
The investment firm also highlighted Nvidia’s comments related to tight supply, the company’s low dependence on China — which is only at mid-single digit percent of data center sales compared with 20% to 25% before the chip export restrictions — as well as the new pipeline and increasing sovereign demand for AI.
BofA raised Nvidia’s 2024 EPS estimate by 13% to $23.11 and the 2025 EPS estimate by 15% to $29.59.
Nvidia shares were rising 15% in recent Thursday trading.