After Nvidia announced preliminary July quarter results that came in well below expectations due to a 44% sequential decline in gaming, Piper Sandler analyst Harsh Kumar said he is not surprised to see the lower gaming revenue, but he is surprised by “the size of the miss.” Though data center also came in slightly lower than expectations, this was largely due to supply chain issues and he doesn’t believe there is a falloff in data center demand, added Kumar. Investors “have been waiting for both the gaming and data center businesses to slip up before getting constructive on the name again,” contends Kumar, who has an Overweight rating and $235 price target on Nvidia shares.
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