Nvidia likely to see AI supercycle, Baird says
Justin Sullivan
Nvidia (NASDAQ:NVDA) could see "another supercycle" investment firm Baird said on Tuesday, with this one fueled by artificial intelligence.
"[W]e expect AI to fuel significant [second-quarter] revenue upside along with continued growth momentum for 2H and well into 2024," analyst Tristan Gerra wrote in an investor note. "Our channel checks suggest no competition in AI enterprise for the medium term." 
Gerra added that the company's Grace Hopper GPUs will likely be an "incremental" few billion dollar revenue opportunity in the medium-term and become cannibalistic to x86 chips produced by competitors, such as Intel (INTC) and AMD (AMD), with Nvidia's long-term goal to "densify" servers and optimize power.
Gerra reiterated his outperform rating on Nvidia (NVDA) and boosted his price target to $570 from $475.
In addition to the AI fueled boom, Gerra said that consumer GPU demand is rebounding, with the expectation that there will be "flattish" trends sequentially and a "modest" increase in the third-quarter. 
A consensus of analysts estimate that Nvidia (NVDA) will earn $2.08 per share on $11.06B in revenue during the second-quarter.
Nvidia (NVDA) shares rose 1.5% in mid-day trading on Tuesday, while AMD (AMD) and Intel (INTC) were down 0.6% and 1.4%, respectively.