Evercore ISI Reiterates Outperform on NVIDIA, $190 PT
Evercore ISI analyst Mark Lipacis reiterated an Outperform rating and $190 price target on NVIDIA
“In a blog on its website, NVDA said it was filing applications to sell its H20 GPUs again, and that the US government has assured NVDA that licenses will be granted, and NVDA hopes to start deliveries soon… Potentially $10bn in Near-Term Revenues Once Approved.
Recall that when the H20 restrictions were originally announced, NVDA took $5.5bn in write-downs, 50% for purchase commitments, and 50% for product.
Assuming 70-75% GM on $2.75bn of inventories would imply about $10bn in revenues anticipated from those written down inventories on hand, but since the product was written down, that would suggest much higher gross margins on that $10bn of revenues… We estimate that over the past 5 years, China has declined from 20- 25% of NVDA revenues to 10-15% more recently.
More recently, our analysis indicates that Tier 2 Cloud Service Providers are ramping AI infrastructure buildouts globally, with NVDA as the solution of choice.
We estimate Cloud CapEx grows by over 50% in 2025, following 56% growth in 2026.
Separately, our checks have indicated high demand for NVDA’s latest solution Blackwell, and high visibility for demand for Blackwells through 2025 and into 2026.”
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