The results of the last fiscal quarter were not very successful for NVIDIA, and the management at the reporting conference often referred both to the surplus of server components that formed last year, and to low demand for its products in China, where, following the results of the previous year, the company formed up to 24% of total revenue, including Hong Kong. By the way, such problems were not unique to NVIDIA, since both Intel and some other companies complained about the weakness of demand in China and the sluggishness of the server market at reporting events. Investor pessimism only intensified after NVIDIA's CFO declined to update its revenue guidance for the full calendar year 2019 and released guidance only for the coming quarter.
Cowen analysts, as the resource notes
Tellingly, Cowen is betting on the announcement of some new NVIDIA products, which will take place from February 2020 to January 2021. According to them, the debut of these new products will allow NVIDIA to raise revenue in the server segment immediately by 40%. One gets the impression that we are talking about the long-discussed announcement of computing accelerators with a new architecture - presumably bearing the symbol "Ampere".
Moreover, in the next few years, NVIDIA will be able to increase revenue in the server segment by a double-digit percentage annually, as Cowen experts are convinced. The forecast for the market value of the company's shares was raised to $195, which is about 30% higher than the current quotes.
Source: 3dnews.ru