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Anticipating yet another supercycle for Nvidia, Baird foresees substantial F2Q revenue gains driven by AI. This growth trajectory is expected to continue throughout 2H and extend well into 2024.
“We expect a significant beat for F2Q and strong growth QoQ for F3Q. AI demand is surging at all levels: individuals, enterprise, hyperscalers. – Based on channel feedback, we continue to see AI driving Nvidia’s DC revenue growth well over 50% in F2025/C2024,” analysts said in a note.
They argue that Nvidia will likely face no competition in AI enterprise applications for the medium term. The introduction of Grace presents a lucrative revenue opportunity in the range of several billion dollars for the medium term.
This opportunity is likely to impact x86 negatively, as Nvidia’s primary value proposition revolves around server densification and power optimization, rather than sheer server unit volume.
Nvidia stock remains a Bullish Fresh Pick at Baird.
