Stifel: Nvidia results incrementally positive for MTSI, SMTC, and SITM

Investing.com -- Nvidia’s latest earnings report has yielded positive implications for key players in the semiconductor supply chain, according to Stifel analysts.

Nvidia (NASDAQ:NVDA) posted a beat on October quarter results, with revenues surpassing consensus estimates by 5.8%. The company also provided a slightly higher outlook for the January quarter, up 1.1%.

Stifel noted that the standout was Nvidia’s Data Center business, which grew 112% year-over-year to $30.7 billion, driven by increased shipments of Hopper GPUs, especially the H200 model, which achieved the fastest ramp in the company’s history.

Nvidia also expressed confidence in the demand for its upcoming Blackwell GPUs, forecasting “several billion dollars” in January quarter revenues, exceeding prior estimates due to improved supply visibility.

Stifel analysts view these developments as “incrementally positive for MTSI, SMTC (NASDAQ:SMTX), and SITM.”

They highlighted Nvidia’s commentary on growing AI spending and the stronger-than-expected outlook for Blackwell revenue as beneficial to these companies.

The impact for MPWR appears more nuanced. Stifel noted that MPWR “did not receive Blackwell orders in the last month,” potentially signaling short-term market share loss.

However, the company is said to remain positioned for future participation as the Blackwell ramp progresses. Additionally, they believe MPWR could still benefit from ongoing growth in Nvidia’s Hopper GPU shipments, which Stifel estimates account for 12%-15% of MPWR’s revenues.

For Data Center networking-oriented companies like ALAB, CRDO, MRVL, and MXL, Stifel says Nvidia’s results suggest a more neutral near-term impact but a positive long-term trajectory, particularly as networking revenue is expected to grow in the January quarter on strong demand for products like InfiniBand, Ethernet switches, and BlueField DPUs.

Stifel concludes that Nvidia’s results underline the sustained expansion of AI spending, presenting significant opportunities across the semiconductor ecosystem.