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On Thursday, Baird’s analysts reaffirmed their positive stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining an Outperform rating with a steady price target of $195.00. The firm’s analyst highlighted the robust growth prospects for NVIDIA, projecting a significant year-over-year revenue increase of nearly 70% in the data center (DC) segment, which is expected to reach over $190 billion this year. This aligns with NVIDIA’s impressive track record, as InvestingPro data shows the company achieved remarkable revenue growth of 114.2% over the last twelve months, while maintaining excellent financial health with a perfect Piotroski Score of 9.
NVIDIA’s performance is bolstered by a strong second half re-acceleration, as industry checks indicate that the full-year shipment estimates for Blackwell, NVIDIA’s product line, remain unchanged. The surge in inferencing workloads is contributing to the increased volume of the B200 series. NVIDIA’s competitive edge is further solidified by the underperformance of custom ASICs (Application-Specific Integrated Circuits) that are being deployed in the market, leading to downward revisions in unit forecasts, while NVIDIA continues to outpace its rivals. With a market capitalization of $3.29 trillion and robust gross profit margins of 75%, NVIDIA has established itself as a dominant force in the semiconductor industry.
The analyst also pointed out that major ASIC development projects have been completed, with expectations of a stable unit outlook into the next year. Despite the competition, NVIDIA’s market position appears unchallenged, with the analyst anticipating a revaluation of NVIDIA’s stock to a higher price point in the second half of the year.
The statement from Baird underscores the confidence in NVIDIA’s leadership in the technology sector, especially in the data center space, where the company’s products are seeing increased demand. The firm’s outlook suggests a strong performance trajectory for NVIDIA, driven by its innovative product offerings and strategic market positioning.
In other recent news, NVIDIA Corporation’s earnings and revenue results have been a focal point for analysts. Rosenblatt Securities raised NVIDIA’s stock target to $200, maintaining a Buy rating, following a "better than feared" quarterly earnings report. Similarly, BofA Securities increased the price target to $180, also reiterating a Buy rating, emphasizing the company’s strong first-quarter performance and its robust production of Blackwell racks. Needham maintained its Buy rating with a $160 target, highlighting NVIDIA’s strong first-quarter results despite challenges from H20 export controls.
DA Davidson, however, maintained a Neutral rating while raising the price target to $135, citing uncertainties in NVIDIA’s business with China as a significant concern. U.S. lawmakers have expressed apprehension over NVIDIA’s planned facility in Shanghai, raising national and economic security issues. The senators have requested detailed plans from NVIDIA regarding the facility, though the company has yet to respond. These developments underscore the geopolitical challenges NVIDIA faces in its operations with China. Despite these concerns, analysts remain largely optimistic about NVIDIA’s growth and technological advancements.
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