NVIDIA Corporation (NASDAQ: NVDA) continues to gain attention in the market as UBS analyst Timothy Arcuri reaffirmed a Buy rating on the stock, setting a price target of $205.00 on October 10. Arcuri’s analysis highlights that recent export data from Taiwan aligns with NVIDIA’s growth trajectory in the data center sector.
The Taiwan Ministry of Finance released its export figures for September, which included details on Automatic Data Processing Equipment (ADP). According to the report, ADP exports excluding laptops totaled $14.07 billion, a decline of 16.03% month-over-month from August’s $16.80 billion. This figure significantly underperformed against seasonal expectations, which typically anticipate a drop of only 2.5% month-over-month. Notably, this marks the second consecutive September of below-seasonal performance following a remarkable 29% month-over-month increase in August.
Arcuri noted that if October follows the usual trend of accounting for 36% of total fiscal Q3 exports, it could reflect an estimated $48 billion in exports, indicating a quarter-on-quarter increase of approximately 20%. This would follow a previous increase of 14% quarter-over-quarter in fiscal Q2. Such growth projections are consistent with the anticipated 22% quarter-over-quarter rise in NVIDIA’s data center revenue, despite the recent decoupling of export data from NVIDIA’s performance in prior periods.
NVIDIA specializes in AI-driven solutions, encompassing platforms designed for data centers, self-driving vehicles, robotics, and cloud services. While there are inherent risks associated with investing in NVIDIA, UBS remains optimistic about its potential. The firm believes that certain AI stocks could yield higher returns in a shorter timeframe, although NVIDIA remains a prominent player in the sector.
Investors seeking insights into promising AI stocks may find value in exploring reports that highlight other opportunities with substantial upside potential. As the landscape of AI technology evolves, NVIDIA’s position as a leader in the market continues to attract attention from analysts and investors alike.
