Bullish indicating open at $55-$60, IPO prices at $37
On Monday, Cantor Fitzgerald reiterated its Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) with a steady price target of $200.00. The firm’s analysis highlighted NVIDIA’s consistent performance, noting the company’s trend of surpassing revenue guidance by approximately $2 billion and projecting quarterly revenue growth between $2 billion to $2.5 billion. This pattern of outperforming expectations has been ongoing since early 2023, with the company achieving remarkable revenue growth of 152% over the last twelve months. According to InvestingPro data, NVIDIA maintains a "GREAT" financial health score, demonstrating strong operational excellence across multiple metrics.
The firm observed that NVIDIA’s regular financial outperformance has led to heightened expectations, making standard beats and raises less impactful on market sentiment. For the current quarter, Cantor Fitzgerald anticipates NVIDIA will continue to exceed guidance but suggests that the raise to consensus estimates might be modest. The analysts pointed out that a more significant surge in performance and a potential break from the recent trend could occur in the July quarter, coinciding with the full-scale launch of NVIDIA’s Blackwell. InvestingPro analysis reveals that NVIDIA maintains impressive gross profit margins of 76% and has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength. Investors can access 18 additional ProTips and comprehensive metrics through InvestingPro’s detailed research reports.
NVIDIA’s financial consistency has been impressive, with the company routinely outpacing its own revenue forecasts. This has set a new standard for the semiconductor giant, where exceeding benchmarks has become the norm rather than an exceptional occurrence. Despite this, Cantor Fitzgerald’s analysis suggests that investors have adjusted to this high level of performance, and as such, notable stock reactions may now require more substantial raises in guidance or revenue.
Looking ahead, the firm is optimistic about NVIDIA’s prospects, particularly with the Blackwell launch on the horizon. This upcoming product release is expected to potentially catalyze a more significant upward movement in the company’s financial trajectory and, by extension, investor reactions.
In summary, while NVIDIA’s consistent financial performance has raised the bar for what constitutes a positive surprise, Cantor Fitzgerald remains confident in the company’s ability to deliver value, maintaining its Overweight rating and $200.00 price target. The firm is particularly keen on the opportunities that the forthcoming Blackwell product could present in the near future.
In other recent news, NVIDIA Corporation is set to release its fourth-quarter earnings results, with analysts from Rosenblatt Securities and Oppenheimer anticipating a positive performance. Rosenblatt maintains a Buy rating with a $220 price target, expecting NVIDIA to slightly outperform consensus estimates and provide an optimistic outlook for the upcoming quarters. Oppenheimer also reiterated its Outperform rating with a $175 price target, noting strong demand for NVIDIA’s AI accelerators from cloud service providers. Meanwhile, KeyBanc Capital Markets raised its price target for NVIDIA to $190, citing robust fourth-quarter results and slightly higher first-quarter guidance.
NVIDIA’s latest product line, Blackwell, is expected to begin shipments within the fourth quarter, with demand projected to exceed supply throughout the fiscal year 2026. The company is also addressing manufacturing constraints for its GB200 NVL server racks, with customers substituting orders for alternative server configurations. Analysts have highlighted the growing capital expenditures from major tech companies, which are intensifying their efforts in AI development, potentially benefiting NVIDIA’s market position.
In addition to NVIDIA’s developments, AI startup DeepSeek announced plans to release more open-source code, reinforcing its commitment to transparency in artificial intelligence. Another startup, Together AI, successfully raised $305 million in funding, increasing its valuation to $3.3 billion, with support from investors including General Catalyst and Prosperity7 Ventures. These recent developments in the AI sector reflect a dynamic and evolving landscape, with NVIDIA positioned as a key player amid rising demand and technological advancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.