Enter the realm of the MOAC, as coined by Rosenblatt analyst Hans Mosesmann: the Mother of All Cycles. And this is only getting started.
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Mosesmann, who ranks at 8th spot amongst Wall Street’s thousands of stock experts, specifically discusses the AI revolution driven by Nvidia (NASDAQ:NVDA), following the company’s consistent beat-and-raise earnings reports.
In its fiscal fourth quarter print, the semi giant’s latest set of results once again exceeded expectations on practically all fronts. Revenue climbed by 265% year-over-year to $22.1 billion, exceeding the consensus estimate by $1.55 billion. The crown jewel – the Data Center business – rose by an even more impressive 409% from the year-ago period (and 27% sequentially) to a record $18.4 billion. Gaming revenue, while flat sequentially, increased by 56% y/y to $2.86 billion. At the other of the scale, adj. EPS reached $5.16, coming in ahead of the analysts’ call by $0.52.
Looking ahead, Nvidia did not disappoint, either. For the first fiscal quarter (April quarter), the company expects revenue will reach $24 billion +/- 2%, while consensus had that figure at $22.03 billion.
“Once again Nvidia smashed numbers for the quarter and guide as Hopper and networking AI trends broadened in a dynamic that is changing the landscape of compute in secular fashion,” said Mosesmann. “The shift to accelerated compute away from general compute is reaching a tipping point, and a disruptive new app, generative AI, is creating a whole new industry.”
“Even with China sales out of the equation (now ~5% of DC sales), and improving overall supply,” notes Mosesmann, “Nvidia remains sold out for the FY and is already constrained in next generation Blackwell which will not ship until 2H24.”
So, time to do what Mosesmann has been prone to doing before, and give NVDA shares a new Street-high price target. His objective goes from $1,100 to $1,400, suggesting the shares will climb another 79% higher from here. It hardly needs mentioning, but Mosesmann’s rating stays a Buy. (To watch Mosesmann’s track record, click here)
Amongst Mosesmann’s colleagues, only two prefer to currently sit this one out, with all 37 other recent reviews taking a positive slant and naturally coalescing to a Strong Buy consensus rating. Meanwhile, the $848.80 average price target suggests the shares will surge ~8% in the year ahead. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
