Alex Belov
Developers by oneinveststock.com. Analyst, investor
Analysts at Wells Fargo, UBS and Piper Sandler lowered price targets for Nvidia stock
A strong 1Q result did not help, the 2Q forecast is lower than expected due to the problems of Russia and China.
+46% in revenue driven by “record-breaking data center and gaming revenue”
Nvidia explained that it reduced its forecast by $500 million due to the conflict between Russia and Ukraine and lockdowns in China.
Added more negative comments Nvidia, which expects a consistent decline in revenue from games in the current quarter.
Almost all of the profits were eaten by a $1.35 billion fee that the company paid because it could not buy Arm and ended the deal.
On a positive note, the board of directors has agreed an additional $15 billion BuyBack by the end of next year.
Analysts lower price targets and forecasts for Nvidia stock for 2023
FORECAST DATE: 05/26/2022
Analyst "Piper Sandler"
4.5/5
Target price lowered for next 12 months = $350 → $250
Percent upside potential for stocks
47.28%
FORECAST DATE: 05/26/2022
Analyst "Keybanc"
4.5/5
Target price lowered for next 12 months = $310 → $250
Percent upside potential for stocks
47.28%
FORECAST DATE: 05/23/2022
Analyst "Bernstein"
4.5/5
Target price lowered for next 12 months = $325 → $225
Percent upside potential for stocks
32.55%
FORECAST DATE: 05/23/2022
Analyst "UBS"
4.5/5
Target price lowered for next 12 months = $350 → $280
Percent upside potential for stocks
64.95%
FORECAST DATE: 05/20/2022
Analyst " Wells Fargo"
4.5/5
Target price lowered for next 12 months = $370 → $250
Percent upside potential for stocks
47.28%
The main thing – Results were record-breaking and above consensus forecasts
– The company gave a low-key outlook, which was the reason for the fall in shares
– Revenue did not grow in all segments, and demand remains at a high level –
– Revenues of the data center segment for the second time in history overtook the gaming.
Key financial indicators
– Revenue — $8.29 billion (+46% YoY, +8.4% QoQ), higher than analysts’ forecasts — $8.12 billion
– Net income: $1.6 billion –
Adjusted EPS of $1.36 (+49% YoY), beating Wall Street estimates of $1.3.
The long-term outlook for NVIDIA shares remains moderately positive. The main medium-term risk is inflation and restrictions in China. If the second issue is resolved, the company will be able to please investors in the next reporting season. Moreover, new products of the company are expected this year, which will strengthen its position in the market.
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