KeyBanc Capital Markets has raised its price targets for several major chipmakers as strong demand for artificial intelligence (AI) products continues.
According to KeyBanc, traditional server demand is witnessing a meaningful recovery, particularly driven by major U.S. cloud providers like Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT), as well as sustained demand from Chinese cloud service providers (CSPs) “and moderately improving demand within Enterprise,” analysts wrote.
“For 2024, we’re increasing our total server shipment estimates to +7% vs. +4% prior, with Enterprise +5% and Cloud +8%,” they said.
“We continue to expect AI servers to grow 150% to ~450K in 2024”
In terms of Nvidia’s (NVDA) GB200, KeyBanc believes that most of the demand in 2025 will be for the NVL72 configuration rather than the NVL36. The firm notes that the NVL72's performance is 20-30 times greater than the H100 and offers the lowest cost per token solution available. As a result, they expect GB200 to generate over $200 billion in data center revenues for Nvidia (NASDAQ:NVDA) in 2025.
KeyBanc has adjusted its price targets for several leading chipmakers, saying its findings are most positive for NVDA, Micron (NASDAQ:MU), Cirrus Logic, (NASDAQ:CRUS), Monolithic Power Systems (NASDAQ:MPWR), and Marvel (MRVL).
Analysts raised their NVDA price target from $130 to $180, MPWR from $850 to $975, CRUS from $120 to $155, and MRVL (NASDAQ:MRVL) from $90 to $95.