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CNBC
6 days ago
- Business
- CNBC
Nvidia is due to post earnings after the bell. What analysts are saying ahead of the report
The bullish thesis on Nvidia remains in place ahead of earnings, but analysts have questions about the company's path forward. The tech giant is due to post fiscal first quarter results after the bell. Analysts polled by LSEG expect the chipmaker to report adjusted earnings of 93 cents per share on $43.28 billion in revenue for the quarter that ended in April. Those figures signal year-over-year earnings and revenue growth of 52% and 62%, respectively. Analysts will look for clues on how China restrictions are impacting sales — and whether the AI demand that's powered markets in recent years remains strong. Nvidia has said it would take a $5.5 billion charge in the quarter tied to these restrictions. CEO Jensen Huang also noted that the policies have slashed the company's China market share from 95% to 50%. Still, shares have jumped more than 24% over the past month, as announcements from key hyperscalers have revived the excitement around AI. Alphabet's Google last week announced several new AI-powered tools at its I/O developer conference and Microsoft launched its Claude 4 AI model . And while the stock remains below its January record, analysts polled by LSEG think Nvidia has room to run. The consensus price target suggests roughly 21% upside ahead. Of the 64 analysts covering Nvidia, 56 have a strong buy or buy rating on shares, per LSEG. Take a look at what some major analysts have to say ahead of earnings: Morgan Stanley: remains overweight and $160 price target Analyst Joseph Moore advised clients continue buying the stock for the long haul ahead of the report. His $160 price target suggests 18% potential upside. "Sell side does not appear to have universally modeled the impact of H20 ban, so there is some downside potential vs. stale consensus. But if mgmt is convincing that supply of racks and non rack Blackwell is improving, and that there is 2h acceleration, it should not matter," Moore wrote in a Tuesday note. Deutsche Bank: maintains hold rating and $125 price target Analyst Ross Seymore likes Nvidia but thinks its overvalued high after its recent run-up over the past month. He still expects the company to deliver a revenue beat, driven by growth in Blackwell and Hopper GPUs with potential for upside if China-driven demand was larger-than-expected before the H20 ban. "Overall, while geopolitical concerns appear to have lessened and we continue to see NVDA as the undisputed leader in AI processing/ enablement, we believe much of this goodness is fairly reflected in NVDA's share price," Seymore wrote in a May 21 note. Bank of America: maintains buy rating and $160 price target Analyst Vivek Arya warned of a "risk of messy Q2 guide" and said that, depending on Nvidia's original timing of its China shipments, the disconnect between consensus estimates on lost sales and investors' expectations could be magnified. "Despite these near-term headwinds we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year," Arya said in his recent note to clients. Wolfe Research: keeps outperform rating and $150 price target Analyst Chris Caso's price target signals upside of 10% from Tuesday's close. "What's important is that we strongly believe the rack issues are temporary (and improving), while the demand trends are secular and durable," Caso said. "Since the stock has recovered heading into the report, and we're not expecting upside, we don't consider this quarter's guidance to be a catalyst. We also can't rule out a speed bump due to slower rack production. But there's also little question that there's more than adequate demand for Blackwell, as evidenced by customers' capex commentary, and the need for inference capacity to drive reasoning models ... NVDA remains one of our favorite ideas. Oppenheimer: keeps outperform rating, $175 price target Analyst Rick Schafer's price target suggests roughly 29.2% potential upside for Nvidia, one of the more bullish forecasts on the Street. "We see upside F1Q (Apr) results and a roughly in-line F2Q (Jul) outlook, despite the loss of H20 sales to China following US govt restrictions. China is now < 5% of sales. Production of flagship GB200 rack-scale systems appears to have moved past their initial "growing pains," he wrote in a note. "NVDA remains best positioned in AI, in our view, benefiting from full-stack AI hardware/software and unique rack-level approach." Piper Sandler: maintains overweight and $150 price target Analyst Harsh Kumar said he's "looking for tea leaves for a strong back half of the year" rather than putting up high expectations for Nvidia's latest quarter. This upcoming print is likely the last of negative news for Nvidia this year, he said. "All in all, we think that NVDA is poised to be flat to down into the print this week. We think that April quarter is poised for a miss in revenues largely from macro uncertainty and from the H20 ban ... We note that for the most part the factors resulting in a miss are outside the company's control. Despite this, we see a strong back half of the year given HPC capex coming on strong coupled with macro forces improving driven by sovereign investments following the announcements of several large deals over recent weeks. We advise investors to weather the uncertainty and stay long the stock," he said in a Tuesday note to clients.
Time of India
19-05-2025
- Business
- Time of India
Wall Street bull Dan Ives says Apple iPhone production isn't feasible in the U.S.; Tim Cook to instead increase production in India by 60%
Apple may be getting ready to make a major shift in its global manufacturing strategy, and it's not in the direction US president Donald Trump wants, as per a report. Apple May Shift 60% of iPhone Production to India Wedbush analyst Dan Ives projected that the tech giant could ramp up its iPhone production in India to as much as 60% to 65% by this fall, depending on how ongoing tariff negotiations play out, according to Benzinga. Analyst Says US Production Not an Option In an X (formerly Twitter) post, he highlighted that the iPhone maker might significantly increase its iPhone assembly in India in a best-case scenario, but he also mentioned that Apple could revert to a China-driven iPhone strategy depending on the tariff situation and deal negotiations, as per Benzinga. However, he emphasized that "US iPhone production not feasible," as per his X post. ALSO READ: Joe Biden's doctor under the microscope: Dr. Kevin O'Connor faces tough questions amid fallout from ex-President's cancer news, did he fail to diagnose earlier? Donald Trump Pushes Back Against Apple's India Expansion Ives' remark comes after Trump recently expressed his disapproval of Apple's manufacturing expansion in India as he told Apple CEO Tim Cook , 'I don't want you building in India,' reported Benzinga. Apple Reassures the Indian Government However, even after Trump's rejection of the company's strategy, Apple is said to have reassured the Indian government of its commitment to its partnership with India as a major manufacturing hub, as per the report. Benzinga's government insiders have also pointed out that there is "no change" in the tech giant's investment plans in India, according to the report. Live Events ALSO READ: With $258 billion in the black, U.S. Treasury posts historic surplus, experts say it might signal brighter days ahead Apple Stock Reacts to Trade Developments Meanwhile, Apple's stock recently rose after the trade negotiations between the United States and China because the firm is majorly dependent on a China-focused supply chain for manufacturing iPhones, as per Benzinga. In the last five days, the shares of Apple increased 6.26%, however, on a year-to-date basis, the shares fell 13.29%, according to Benzinga Pro data. FAQs Is Apple moving away from China? Not completely. It may still rely on China depending on how tariffs and negotiations go. Why is Apple thinking of moving iPhone production to India? To reduce risk. Apple wants to avoid depending too much on China, especially with rising tariffs and political tensions.
Time of India
17-05-2025
- Business
- Time of India
iPhones set for takeoff from new Foxconn unit
Apple 's Taiwanese contract manufacturer Foxconn is poised to begin shipments of iPhones from its new unit in Karnataka as early as June, according to people aware of the developments, who said final checks are ongoing to start commercial shipments. Last week, 'a senior Apple operations executive from its headquarters in Cupertino visited both of its suppliers — the Foxconn unit in Bengaluru as well as the Tata Electronics facility in Hosur to check the progress and preparedness of the plants ahead of the upcoming launches,' said a person cited above. The visit by the high-ranking Apple executive to the sprawling 300-acre Foxconn facility in Devanahalli on the outskirts of Bengaluru was timed as a review of operations ahead of the likely launch of iPhone shipments next month. This new plant is set to emerge as the second-largest Foxconn facility, after its Chinese unit, for the manufacturing of the iconic iPhones. 'Foxconn's unit in the Devanahalli Information Technology Investment Region (ITIR) is almost ready for launch,' said MB Patil, Karnataka's minister for large and medium industries, who expects the commencement of operations to boost state's prospects 'for attracting more foreign investment without compromising the interests of any stakeholder'. Queries sent to Apple, Foxconn and Tata Electronics remained unanswered till press time. These latest developments come even as Apple faces pushback from Washington DC for its aggressive manufacturing push in countries like India and China. On Thursday, US President Donald Trump said that he has asked Apple CEO Tim Cook to not build and expand the company's manufacturing operations in India. However, the government officials and suppliers alike say plans remain on track, adding that there has been no communication from Apple to halt or pause the diversification of contract supply away from China, as ET reported on Friday. 'We believe that Apple could ramp up iPhone assembly production in India up to 60–65% by fall in a best-case scenario but could easily pivot back to a China-driven iPhone strategy depending on the tariff situation and deal negotiations,' Daniel Ives, global head of technology research at Wedbush Securities said in a report on Friday. 'We see no chance that iPhone production starts to happen in the US in the near term given the upside-down cost model and Herculean-like supply chain logistics needed for such an initiative,' he wrote. To be sure, analysts expect more pressure from the Trump administration on Apple to build iPhone production in the US. However, any such move would result in an inflated iPhone price point of about $3,500, as per Wedbush Securities, making the proposition a non-starter for the Cupertino-based company. 'Foxconn will have to ramp up its India capacity by at least five times,' said Neil Shah, vice president at Counterpoint Research, 'with almost all iPhones for the US market likely to be produced in India, depending on how the sanctions negotiations go and if Apple plans to move to India completely.' The Taiwanese firm would want the production to take off from the Bengaluru plant as soon as possible as it is 'critical for Foxconn to maintain a lion's share of iPhone production and PLI incentives,' Shah said. ET reported on March 31 that Foxconn was planning to produce up to 25–30 million iPhones at its India plants in 2025, more than double it made last year. The company had been conducting limited trials at its Bengaluru campus for about four months at the time, progressing swiftly towards the 'revenue build' phase where the phones were ready to be shipped. Broader Portfolio Earlier on May 1, Apple CEO Tim Cook said that for the June quarter, the company expects a majority of iPhones sold in the US to have India as their country of origin . Foxconn has operations across Tamil Nadu, Karnataka and Telangana. Apart from the Bengaluru unit, the Taiwanese major has opened a new unit in Hyderabad to make AirPods, reflecting the widening of the Apple portfolio in India. This is in addition to its existing large-scale operations at its Sriperumbudur campus near Chennai where the bulk of iPhone assembly takes place currently. Apple's other major supplier Tata Electronics, which has a facility in Hosur, makes enclosures for iPhones. The electronics manufacturing arm of the Tata Group has been scaling expeditiously and has acquired the Indian arms of other Apple suppliers — Wistron and Pegatron. 'We believe Apple has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall,' said Ives. 'All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence that Cupertino's aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China,' he said.
Time of India
17-05-2025
- Business
- Time of India
iPhones set for takeoff from new Foxconn unit
Apple 's Taiwanese contract manufacturer Foxconn is poised to begin shipments of iPhones from its new unit in Karnataka as early as June, according to people aware of the developments, who said final checks are ongoing to start commercial shipments. Last week, 'a senior Apple operations executive from its headquarters in Cupertino visited both of its suppliers — the Foxconn unit in Bengaluru as well as the Tata Electronics facility in Hosur to check the progress and preparedness of the plants ahead of the upcoming launches,' said a person cited above. The visit by the high-ranking Apple executive to the sprawling 300-acre Foxconn facility in Devanahalli on the outskirts of Bengaluru was timed as a review of operations ahead of the likely launch of iPhone shipments next month. This new plant is set to emerge as the second-largest Foxconn facility, after its Chinese unit, for the manufacturing of the iconic iPhones. 'Foxconn's unit in the Devanahalli Information Technology Investment Region (ITIR) is almost ready for launch,' said MB Patil, Karnataka's minister for large and medium industries, who expects the commencement of operations to boost state's prospects 'for attracting more foreign investment without compromising the interests of any stakeholder'. Queries sent to Apple, Foxconn and Tata Electronics remained unanswered till press time. These latest developments come even as Apple faces pushback from Washington DC for its aggressive manufacturing push in countries like India and China. On Thursday, US President Donald Trump said that he has asked Apple CEO Tim Cook to not build and expand the company's manufacturing operations in India. However, the government officials and suppliers alike say plans remain on track, adding that there has been no communication from Apple to halt or pause the diversification of contract supply away from China, as ET reported on Friday. 'We believe that Apple could ramp up iPhone assembly production in India up to 60–65% by fall in a best-case scenario but could easily pivot back to a China-driven iPhone strategy depending on the tariff situation and deal negotiations,' Daniel Ives, global head of technology research at Wedbush Securities said in a report on Friday. 'We see no chance that iPhone production starts to happen in the US in the near term given the upside-down cost model and Herculean-like supply chain logistics needed for such an initiative,' he wrote. To be sure, analysts expect more pressure from the Trump administration on Apple to build iPhone production in the US. However, any such move would result in an inflated iPhone price point of about $3,500, as per Wedbush Securities, making the proposition a non-starter for the Cupertino-based company. 'Foxconn will have to ramp up its India capacity by at least five times,' said Neil Shah, vice president at Counterpoint Research, 'with almost all iPhones for the US market likely to be produced in India, depending on how the sanctions negotiations go and if Apple plans to move to India completely.' The Taiwanese firm would want the production to take off from the Bengaluru plant as soon as possible as it is 'critical for Foxconn to maintain a lion's share of iPhone production and PLI incentives,' Shah said. ET reported on March 31 that Foxconn was planning to produce up to 25–30 million iPhones at its India plants in 2025, more than double it made last year. The company had been conducting limited trials at its Bengaluru campus for about four months at the time, progressing swiftly towards the 'revenue build' phase where the phones were ready to be shipped. Broader Portfolio Earlier on May 1, Apple CEO Tim Cook said that for the June quarter, the company expects a majority of iPhones sold in the US to have India as their country of origin . Foxconn has operations across Tamil Nadu, Karnataka and Telangana. Apart from the Bengaluru unit, the Taiwanese major has opened a new unit in Hyderabad to make AirPods, reflecting the widening of the Apple portfolio in India. This is in addition to its existing large-scale operations at its Sriperumbudur campus near Chennai where the bulk of iPhone assembly takes place currently. Apple's other major supplier Tata Electronics, which has a facility in Hosur, makes enclosures for iPhones. The electronics manufacturing arm of the Tata Group has been scaling expeditiously and has acquired the Indian arms of other Apple suppliers — Wistron and Pegatron. 'We believe Apple has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall,' said Ives. 'All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence that Cupertino's aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China,' he said.
Time of India
17-05-2025
- Business
- Time of India
iPhones Set for Takeoff from New Foxconn Unit
Apple's Taiwanese contract manufacturer Foxconn is poised to begin shipments of iPhones from its new unit in Karnataka as early as June, according to people aware of the developments, who said final checks are ongoing to start commercial shipments. Last week, 'a senior Apple operations executive from its headquarters in Cupertino visited both of its suppliers — the Foxconn unit in Bengaluru as well as the Tata Electronics facility in Hosur to check the progress and preparedness of the plants ahead of the upcoming launches,' said a person cited above. The visit by the Apple executive to the sprawling 300-acre Foxconn facility in Devanahalli on the outskirts of Bengaluru was timed as a review of operations ahead of the likely launch of iPhone shipments next month. The new plant is set to emerge as the second-largest Foxconn facility, after its Chinese unit, for the manufacturing of the iconic iPhones. 'Foxconn's unit in the Devanahalli Information Technology Investment Region (ITIR) is almost ready for launch,' said MB Patil, Karnataka's minister for large and medium industries, who expects the commencement of operations to boost state's prospects 'for attracting more foreign investment without compromising the interests of any stakeholder'. Queries sent to Apple, Foxconn and Tata Electronics remained unanswered till press time. Live Events These developments come even as Apple faces pushback from Washington DC for its manufacturing push in countries like India and China. On Thursday, US President Donald Trump said that he has asked Apple CEO Tim Cook to not build and expand the company's manufacturing operations in India. However, the government officials and suppliers alike say plans remain on track, adding that there has been no communication from Apple to halt or pause the diversification of contract supply away from China, as ET reported on Friday. 'We believe that Apple could ramp up iPhone assembly production in India up to 60-65% by Fall in a best-case scenario but could easily pivot back to a China-driven iPhone strategy depending on the tariff situation and deal negotiations,' Dan Ives, an analyst at Wedbush Securities said in a report on Friday. 'We see no chance that iPhone production starts to happen in the US in the near term given the upside-down cost model and Herculean-like supply chain logistics needed for such an initiative,' he wrote. To be sure, analysts expect more pressure from the Trump administration on Apple to build iPhone production in the US. However, any such move would result in an inflated iPhone price point of about $3,500, making the proposition a non-starter for the Cupertino-based company. 'Foxconn will have to ramp up its India capacity by at least five times,' said Neil Shah, vice president at Counterpoint Research, 'with almost all iPhones for the US market likely to be produced in India, depending on how the sanctions negotiations go and if Apple plans to move to India completely.' The Taiwanese firm would want the production to take off from the Bengaluru plant as soon as possible as it is 'critical for Foxconn to maintain a lion's share of iPhone production and PLI incentives,' Shah said. ET reported on March 31 that Foxconn was planning to produce up to 25-30 million iPhones at its India plants in 2025, more than double it made last year. The company had been conducting limited trials at its Bengaluru campus for about four months at the time, progressing swiftly towards the 'revenue build' phase where the phones were ready to be shipped. Earlier on May 1, Apple CEO Tim Cook said that for the June quarter, the company expects a majority of iPhones sold in the US to have India as their country of origin. Foxconn has operations across Tamil Nadu, Karnataka and Telangana. Apart from the Bengaluru unit, the Taiwanese major has opened a new unit in Hyderabad to make AirPods, reflecting the widening of the Apple portfolio in India. This is in addition to its existing large-scale operations at its Sriperumbudur campus near Chennai where the bulk of iPhone assembly takes place currently. Apple's other major supplier Tata Electronics, which has a facility in Hosur, makes enclosures for iPhones. The electronics manufacturing arm of the Tata Group has been scaling expeditiously and has acquired the Indian arms of other Apple suppliers — Wistron and Pegatron. 'We believe Apple has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall,' said Ives. 'All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence that Cupertino's aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China,' he said.
