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© Reuters. NVIDIA (NVDA) accelerator sales could overtake x86 CPU in 2023 – BofA
By Sam Boughedda
BofA analysts raised the firm’s price target on NVIDIA Corporation (NASDAQ:NVDA) to $340 from $310 per share, reiterating a Buy rating on the stock in a note Wednesday.
They stated that the firm believes accelerator sales could overtake x86 CPU in 2023.
“Surging AI workloads in cloud/enterprise data centers could shift more computing horsepower/value towards specialized accelerators (such as NVDA GPU and custom chips from Broadcom/Marvell) and away from traditional x86-based INTC/AMD server CPUs,” the analysts wrote.
“We estimate the crossover happens in CY23E, driving accelerator sales above $40bn by CY25E (37%+ CAGR from CY22), while x86 CPU grow at modest 3% CAGR to $26bn. Implications: 1) Positive for NVDA (and custom chip enablers AVGO/MRVL), but 2) Mixed for AMD (server share gains, accelerator options, Xilinx synergies) and 3) negative for INTC (75% server CPU share exposed to competition from AMD, Arm, accelerators).”
After jumping more than 2% in Tuesday’s session, Nvidia shares have retreated around 1% in premarket trading on Wednesday to below the $274 mark.
