Nvidia capacity constraints to limit upside this quarter, says Wolfe

Wolfe Research says that while Nvidia’s January quarter revenue guidance of $20B at the midpoint is “conservative enough that upside is likely,” the firm is not expecting a repeat of the significant beats over the past 2 quarters. Nvidia remains capacity constrained, the analyst tells investors in a research note. While management reiterated their view that incremental capacity would be added each quarter through the year, Wolfe’s supply chain checks suggest that more significant CoWoS capacity will be added during Q2, which believe will benefit Nvidia revenue more strongly in the July and October quarters, the analyst tells investors in a research note. Nvidia remains Wolfe’s top pick, but it moderated expectations into this particular quarter. It keeps an Outperform rating on the shares with a $630 price target