When it comes to an arms race like the kind we find AI stocks in, selling “bullets” is one of the best positions to be in. That, according to a new report from Bank of America, is just where Nvidia (NASDAQ:NVDA) finds itself. Despite this, though, Nvidia is slightly down at the time of writing.
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The word came from Bank of America analyst Vivek Arya, who noted that first-quarter sales for Nvidia would be comparatively quiet, though somewhat improved. However, in the second quarter, things could be significantly better. Arya looks for Nvidia to potentially surprise to the upside by $200 to $300 million compared to consensus estimates of $7.1 billion in sales.
One of the biggest points to watch is for sales of the H100 chips from Nvidia. The H100 is significantly more powerful than the A100, and that could mean brisk sales even in a weak macroeconomic environment. Not everyone is so certain, though; Mott Capital Management offered up a note of its own, suggesting that a significant retracement could be in the works, as it referred to the stock as “grossly overvalued.” Further, Mott looks at current growth rates as not being conducive to ongoing optimism.
Most analysts, however, are more bullish than Mott. With 30 Buy ratings, seven Holds, and one Sell, Nvidia stock is considered a Strong Buy. However, with an average price target of $288.24, it offers investors only a slim upside potential of 0.98%.
