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Nvidia Q3 Results ‘Quite’ Pleasing For Piper Sandler

Sam Boughedda
Sam Boughedda trader
Updated 17 Nov 2022

Nvidia (NASDAQ: NVDA) reported third-quarter earnings after the close on Wednesday, missing earnings estimates and beating revenue expectations, sending its stock lower, but two analysts have reacted positively to the results.

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Nvidia shares are down 1.6% at the time of writing.

The technology firm posted profits of $0.58 per share on revenue of $5.93 billion, with analysts forecasting earnings of $0.69 per share on revenue of $5.77 billion.

Reacting to the report, Piper Sandler analyst Harsh Kumar said he is “quite pleased” with Nvidia’s results, adding that Nvidia beat revenue estimates for the quarter handily and delivered guidance that was in line with expectations. The analyst, who has an Overweight rating and a $200 price target on the stock, told investors in a research note that the growth rate for the company’s data center business appears to have bottomed in the quarter, while he expects the January quarter to have a similar growth dynamic, but with new products coming on, he is confident that growth will accelerate into fiscal 2024.

Meanwhile, Jefferies analyst Mark Lipacis reiterated a Buy rating and $225 price target on Nvidia, saying the fundamentals have bottomed. Lipacis explained that Nvidia’s results beat expectations when inventory writedowns are excluded. In addition, he also feels with new product cycles in data center and gaming, Nvidia will grow quarter-over-quarter through 2023, while his checks indicate Nvidia’s full-stack ecosystem “has become the de-facto standard in the data center.”

Following the earnings release, Stifel raised the firm’s price target on Nvidia to $175 from $165, maintaining a Hold rating on the shares. Analyst Ruben Roy said Nvidia’s Datacenter segment performance “appears positioned to fare better than Gaming over the next few quarters.”

Elsewhere, Nvidia was upgraded to Buy from Hold at Summit Insights, with the firm seeing a favorable risk-reward scenario for Nvidia shares.

Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.