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On Thursday, DA Davidson analyst Gil Luria revised the firm’s outlook on NVIDIA stock (NASDAQ:NVDA), reducing the price target to $125 from the previous $135, while maintaining a Neutral rating. The adjustment follows Luria’s attendance at NVIDIA’s Investor Day, which took place at the GPU Technology Conference (GTC) in San Jose. According to InvestingPro data, NVIDIA maintains excellent financial health with a perfect Piotroski Score of 9, suggesting strong operational efficiency despite market fluctuations.
During the event, NVIDIA continued to emphasize its commitment to advancing AI accelerator products, introducing the Blackwell Ultra. The company also showcased the expanding opportunities in various industries, notably with AI factories. This strategic focus appears well-founded, as InvestingPro data shows remarkable revenue growth of 114.2% over the last twelve months, with analysts anticipating continued strong sales growth in the current year. Despite these developments, Luria expressed caution regarding NVIDIA’s outlook for the coming year, which influenced the decision to maintain a Neutral stance and lower the price target.
The Investor Day Q&A and the keynote by NVIDIA’s CEO, Mr. Huang, provided insights into the company’s strategic direction and product innovation. NVIDIA’s focus on AI technology and its applications across different sectors was evident, with the Blackwell Ultra announcement being a highlight of the event. This new product is expected to enhance NVIDIA’s position in the AI accelerator market.
However, despite the positive developments and NVIDIA’s clear strategy for growth, DA Davidson’s lowered price target reflects a conservative approach to the company’s future performance. The firm’s analysis suggests a need for caution, considering the potential challenges that may impact NVIDIA’s progress in the out year.
The market will continue to monitor NVIDIA’s performance closely, especially in relation to its AI initiatives and product releases, which are critical to the company’s success in the highly competitive technology sector. NVIDIA’s stock performance will likely be influenced by its ability to deliver on its promises and adapt to the rapidly evolving demands of the AI industry. Currently trading near its InvestingPro Fair Value, NVIDIA maintains strong fundamentals with a gross profit margin of 75% and minimal debt levels. For deeper insights into NVIDIA’s valuation and 20+ additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, NVIDIA has been the focus of multiple analyst assessments and corporate announcements. UBS analyst Timothy Arcuri reaffirmed a Buy rating on NVIDIA with a price target of $185, highlighting potential growth in the company’s data center revenue and infrastructure business. Similarly, Benchmark’s Cody Acree maintained a Buy rating with a $190 target, emphasizing NVIDIA’s leadership in technology sectors and its plans to expand manufacturing capabilities. Truist Securities also upheld a Buy rating and set a price target of $205, citing NVIDIA’s product roadmap and the acceleration of customer orders as key factors supporting their positive outlook.
JPMorgan analyst Harlan Sur reiterated an Overweight rating with a $170 target, praising NVIDIA’s ecosystem and its potential to capture a significant share of data center spending. Sur also noted the company’s advancements in AI factory projects and software strategy. In a separate development, NVIDIA’s CEO Jensen Huang clarified that the company has not been invited to participate in any potential purchase of Intel (NASDAQ:INTC) shares, dispelling rumors of such involvement. These updates reflect ongoing confidence from analysts in NVIDIA’s market positioning and future growth prospects.
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