Nvidia's (NVDA) Long-Term AI Leadership Intact, Says Bernstein

NVIDIA Corporation (NASDAQ:NVDA) is one of the Buzzing AI Stocks on Wall Street. On December 15, Bernstein SocGen Group reiterated an “Outperform” rating on the stock with a $275.00 price target. Analysts at the firm are confident in Nvidia’s AI leadership long-term, even though the company is currently facing China export license delays for the H200.

“Takeaways from an investor meeting with IR: NVIDIA is still awaiting licenses to ship H200 products into China from the U.S. government (at this point all they have is Trump’s tweet/truth…).”

The firm noted that once Nvidia receives these licenses, it will begin to assess demand requests and begin manufacturing. While it does already have some H200 related inventory, it doesn’t have all the required components. Moreover, it is also currently working with suppliers and manufacturers to assess production timelines.

Bernstein highlighted how Nvidia hasn’t even received the official paperwork surrounding the 25% governmental revenue share, which is why they are uncertain about how this will all be accounted for in financial reporting.

While the company believes it is at least 2 years ahead of Google’s TPU program, it does acknowledge the strides Google has made in its 10 years journey.

“As the AI landscape continues to move rapidly (e.g. from CNN to transformer models to whatever comes next), they believe it will be difficult for Google to convince CSPs to deploy TPUs as they are optimized for specific model structures (we shall see, clearly there is some deployment i.e. Anthropic at least). But they believe NVIDIA’s programmable platform solutions remain the best hardware for cloud AI infrastructure.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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Disclosure: None.