Nvidia likely to keep benefiting from 'resilient' cloud, but macro weakness ahead: Citi
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Nvidia (NASDAQ:NVDA) will report second-quarter results after the close of trading today and while it already pre-announced due to poor gaming figures, the company should still keep benefiting from "resilient" cloud demand, even if that starts to curtail, investment firm Citi said on Tuesday.
Analyst Atif Malik, who has a buy rating on Nvidia (NVDA) and a $285 price target, noted that the preliminary data center figures for the quarter were $3.8B, or just 1% sequentially and "well below" the prior gains of between 5% and 7%. However, that was due to supply chain issues and it's likely that demand for the cloud, especially from hyperscalers, will continue to remain "resilient," even as worries over the global economy persist.
Malik added that Advanced Micro Devices (AMD), which competes with Nvidia (NVDA), pointed out that some enterprise deals were taking "a bit longer to close" than they have in the past.
"As such, we expect [October quarter] data center outlook below Streetâs +6% [quarter-over-quarter]," Malik wrote, while noting that a delayed ramp in the company's Hopper line of products as a result of CPU delays could actually help the following quarter. 
The analyst added that Nvidia's (NVDA) GTC conference on September 20 could serve as a "potential catalyst" for the stock.
Last week, Bank of America said another guide-down from the Jensen Huang-led Nvidia (NVDA) might result in a "necessary reset" as it gets ready to launch its 5-nanometer line of products.