Nvidia (NVDA) is still facing supply constrained amid strong demand as the company is set to report its Q3 results on Nov. 21,
Wedbush said in a Friday note.
“With NVDA still seemingly supply constrained through at least CQ2’24 despite a seemingly significant…ramp, and with constraints potentially lasting well beyond that point (depending on how quickly applications built on AI begin to get monetized), we see no reason to shift our positive view on the stock,” Wedbush analyst Matt Bryson said.
Bryson said the situation remained the same amid significant newsflow over the past quarter, pointing to new US restrictions on shipments to China, positive commentary and increased revenue goals from key competitors.
“If Nvidia beats by less in Q3 or guides lower in Q4, with Nvidia supply falling well short of demand, any shortfall just leaves a greater amount of demand unfulfilled that Nvidia can ship to in future quarters, effectively raising the bar,” the analyst said. He estimates Q3 revenue of $16 billion and non-GAAP earnings of $3.33 per share.
Wedbush reiterated its outperform rating and $600 price target.