TD Cowen raised its price targets on NVIDIA (NVDA) and AMD (NASDAQ:AMD) shares ahead of their upcoming earnings reports, citing strong demand and positive future prospects.
For Nvidia (NASDAQ:NVDA), TD Cowen highlights the company's robust performance, particularly in its data center segment. "Our checks continue to point to upside in Datacenter as demand for Hopper/Blackwell-based AI systems continues to exceed supply," noted the bank.
Analysts expect a significant beat and raise on the F2Q25 call, driven by sustained demand for Hopper-based systems and the anticipated ramp-up of the Blackwell platforms. TD Cowen has reiterated Nvidia as a Top Pick, raising its price target to $165 from $140.
The firm points to Nvidia's relentless pace of innovation across the AI compute stack as a key factor in its continued success, with a solid product roadmap that supports growth through 2025 and beyond.
Similarly, TD Cowen is optimistic about AMD's prospects, despite some challenges in specific segments. Analysts note that over the past nine months, AMD's sentiment has fluctuated, but the fundamentals remain strong.
"We believe the fundamental setup into 2H24 and 2025 is strong, driven by some upside to core server, strong growth of MI300/325 ahead of the MI350/400 product cycles, and favorable PC seasonality near-term," analysts stated.
Analysts anticipate AMD's Datacenter segment to show significant growth, with a steady performance in the Client segment offsetting weaker Gaming and Embedded segments.
TD Cowen has raised AMD's price target to $210 from $200, expecting strong momentum as the company ramps up its CPU and AI products in the latter half of 2024 and into 2025.
Overall, TD Cowen's updated price targets for Nvidia and AMD reflect their confidence in the companies' continued growth and market leadership in AI and data center technologies.