US LNG exports surge but will buyers in China turn up?
Barclays (LON:BARC) raised its price target on Nvidia (NASDAQ:NVDA) to $200 from $170 on Monday, while maintaining an Overweight rating on the chipmaker’s stock. The stock, currently trading near its 52-week high of $153.13, has demonstrated remarkable strength with an 86% revenue growth over the last twelve months.
The research firm cited approximately $2 billion in potential upside for Nvidia’s July quarter compared to consensus estimates, prompting Barclays to increase its Compute revenue estimate to about $37 billion from $35.6 billion previously. According to InvestingPro, Nvidia maintains excellent financial health with strong profitability metrics, though current RSI levels suggest the stock may be overbought.
Blackwell chip production reached approximately 30,000 wafers per month in June, below Barclays’ prior expectation of 40,000 wafers, but the firm noted that utilization rates remain healthy with positive supply chain feedback for the second half of 2023.
Barclays now forecasts Nvidia’s quarterly revenue to reach $42 billion for the third calendar quarter and $48 billion for the fourth calendar quarter, compared to Wall Street consensus estimates of approximately $40.8 billion and $46.2 billion, respectively.
The high-end Blackwell Ultra remains on schedule with small production volumes expected by the end of the current quarter and mass production set for the third quarter, with Barclays estimating that system sales could approach 50% of revenue by October.
In other recent news, Nvidia has announced a partnership with Deutsche Telekom (OTC:DTEGY) to establish Europe’s first industrial AI cloud in Germany, with completion expected by 2026. This collaboration involves Nvidia supplying 10,000 chips, while Deutsche Telekom will manage infrastructure and operations. Additionally, Nvidia will exclude China from its revenue and profit forecasts due to U.S. restrictions on chip sales to the region, as confirmed by CEO Jensen Huang. Meanwhile, Advanced Micro Devices (NASDAQ:AMD) has introduced new AI chips, the MI350 and MI400 series, aimed at challenging Nvidia’s market dominance. AMD CEO Lisa Su highlighted the company’s efforts to enhance software capabilities and align product releases with Nvidia’s schedule. Huawei is projected to produce no more than 200,000 advanced AI chips in 2025, as stated by a U.S. export controls official. Despite limitations, Huawei continues to develop its AI chips, though they remain a generation behind U.S. competitors. In the broader tech sector, major U.S. tech stocks, including Nvidia, experienced declines as investors shifted to safer assets following geopolitical tensions between Israel and Iran.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.