A veteran fund manager revises his stock price target

TheStreet

And the era saw the rise of the such innovations as the steam engine, the telegraph, and the electric generator.
“The next industrial revolution has begun,” the Santa Clara, Calif., Ai-chip maker’s chief executive, Jensen Huang, told analysts during Nvidia’s earnings call.
Nvidia earned $6.12 a share, well ahead of the $5.60 analyst consensus estimate.
Revenue more than tripled (up 262%) year over year to $26.04 billion, easily clearing the $24.59 billion market forecast.
“From today’s information retrieval model, we are shifting to an answers and skills generation model of computing,” Huang said.
TheStreet Pro’s Chris Versace raised his price target on Nvidia’s earnings report to $1,250 from $1,100 following the company’s results.
Versace, who began his career in equity research before founding Versace Management in 2005, holds an MBA from Fordham Gabelli School of Business.
Versace noted that the surging data-center revenue reflected higher shipments of the Nvidia Hopper GPU computing platform.

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French ambassador Louis-Guillaume Otto used this phrase to characterize the enormous changes taking place all around him in a letter dated July 6, 1799.

He selected the phrase “Industrial Revolution,” which historians claim is the earliest instance of in writing and denotes the turbulent time when machines started to take the place of human labor.

Many left farms to work in factories, which led to the growth of cities. Additionally, during this time, innovations like the electric generator, telegraph, and steam engine gained popularity.

“After domesticating animals and plants, it is undoubtedly the most significant event in human history—possibly even more significant than the development of language,” said a professor at the University of Illinois at Chicago. In 2004, Deirdre McCloskey wrote.

And now that artificial intelligence is likely to have an impact on almost everything fortunate that people do, it seems as though the world is about to undergo another cultural revolution.

“We are changing what computers can do,” says the CEO of Nvidia.

With a $2.66 trillion market valuation, Nvidia (NVDA), the leading player in the significant AI shift, released a stunning fiscal first-quarter report late on Wednesday.

According to the Santa Clara, California, “the next industrial revolution has begun.”. CEO of AI-chip maker Jensen Huang informed analysts during Nvidia’s earnings call.

“Countries and businesses are teaming up with Nvidia to convert the trillion-dollar installed base of conventional data centers to faster processing and construct AI factories, a new kind of data center designed to generate artificial intelligence, a new commodity. “.

“AI will bring significant productivity gains to nearly every industry and help companies be more cost and energy efficient while expanding revenue opportunities,” stated Huang, one of the company’s co-founders in 1993. “.”.

Much above the $5.60 analyst consensus estimate, Nvidia earned $6.12 per share. At $26.04 billion, revenue easily exceeded the $24.59 billion market forecast, more than trebling (up 262 percent) year over year.

Group gross margin increased to 78.9 percent as data-center revenue, which includes the company’s primary AI offerings, more than fivefold increased from the previous year to a record $22.6 billion.

“We are transitioning to an answers and skills generation model of computing from today’s information retrieval model,” Huang stated. “AI will be intelligent, reason, plan, comprehend the situation and our intentions, and carry out tasks. “.”.

Although it announced that it would not begin shipping its new Blackwell system of processors and software until the second half, Nvidia said that revenue for the current quarter would increase to about $28 billion, with a 2 percent margin for error.

Huang clarified, however, that Blackwell systems have been made to be backwards compatible and that customers can “easily transition from H100 to H200 to B100.”. “.

He declared, “We are radically transforming what computers can do and how computing functions.”.

There are undoubtedly doubters who think the AI revolution is just a lot of hype, but they’re not very common on Wall Street.

The analyst mentions Nvidia’s assurance.

The group “is such a unique growth property that investors will continue to support the company’s premium valuation multiples,” an analyst said in response to Nvidia’s financial results. ****.

After the company’s results, Chris Versace of TheStreet Pro increased his price target for Nvidia to $1,250 from $1,100 in response to its earnings report.

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Versace stated, “Nvidia revealed a 10-for-1 stock split effective June 7 and an increase in its dividend to $0.01 per share on a post-split basis, sweetening the results and guidance.”.

When considering the dividend over the entirety of Nvidia’s upcoming share count, it amounts to giving $1 billion in annual returns to shareholders rather than just show money. $100 million prior to the split of the stock,” he said.

Before establishing Versace Management in 2005, Versace started his career in equity research. He has an MBA from Fordham Gabelli School of Business. He is a coauthor of the book Cocktail Investing: How to Cut Through the Noise and Find Unambiguous Investing Signals for Higher Returns. “.

Although Nvidia is not a dividend stock, he said, the company’s confidence in its business prospects as AI adoption moves past its early stages is evident in that move.

Versace pointed out that increased shipments of Nvidia’s Hopper GPU computing platform were the reason behind the staggering revenue growth in data centers.

Large language models, recommendation engines, and generative AI applications are trained and inferred using this platform by both consumer and enterprise internet companies.

He went on to say that the data center business, which accounts for roughly 87% of total revenue, “is the clear driver of Nvidia’s revenue and profits and one that should continue to benefit from ramping AI and data center spending from the likes of Big Tech and others.”. “.

“We anticipate that generative AI will drive up demand for AI compute as it finds its way into more consumer internet applications,” he stated.

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