Nvidia Soars Past Forecasts with 126% Revenue Growth in 2023, AWS Deal Fuels 217% Data Center Surge
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Nvidia's 2023 revenue grew 126% year-over-year, far exceeding our previous forecast of 87.6% growth. The outperformance was driven by 217% Data Center growth, boosted by a major new partnership with AWS.
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We maintain our positive long-term outlook for Nvidia's Data Center segment, projecting 60.9% average growth fueled by partnerships, product breadth, performance advantages, and potential sovereign AI growth.
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For 2024, we forecast 57% total revenue growth led by Data Center, and expect Gaming growth to rebound with the PC market recovery. We increased our Automotive growth forecast to 20.6%.
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Our 2023-2028 revenue forecast is now $383 billion compared to our prior $284 billion forecast, mainly due to Nvidia's much higher 2023 revenue base. This raises our valuation and price target.
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We reiterate our Strong Buy rating on NVDA stock with a price target of $1,297, representing 48% upside. Our growth forecasts remain strong, and valuation increased due to higher baseline revenue.