Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, DA Davidson maintained a Neutral stance on NVIDIA (NASDAQ:NVDA) shares, reaffirming a price target of $135. The firm’s analysts cited a combination of positive and less encouraging financial outcomes, highlighting that while Data Center revenue outperformed market expectations, the company’s gross margin guidance did not meet the anticipated figures. According to InvestingPro data, NVIDIA maintains impressive gross profit margins of 75.86% and has achieved a perfect Piotroski Score of 9, indicating strong financial health.
The analysis by DA Davidson comes after NVIDIA reported its financial results, which presented a contrast in performance across different segments. The firm’s analysts pointed out the robust revenue from the Data Center sector, which exceeded what was predicted by market experts. This strong performance indicates a healthy demand for NVIDIA’s data processing solutions.
However, the company’s gross margin guidance for the future was not as promising, coming in below what analysts had hoped for. This element of NVIDIA’s financial guidance suggests potential challenges in profitability or cost management that the company might face. Despite these concerns, InvestingPro data shows NVIDIA has achieved remarkable revenue growth of 152.44% over the last twelve months, with analysts expecting continued profitability this year.
Despite the mixed financial results, DA Davidson expects NVIDIA to continue its momentum in supply growth. The analysts specifically mentioned the Blackwell supply, which is anticipated to ramp up swiftly over the course of the year. The firm noted strong customer demand for these systems, which could bode well for NVIDIA’s performance in the coming months.
The reiterated price target of $135 by DA Davidson reflects the firm’s measured outlook on NVIDIA’s stock, balancing the positive aspects with the areas of concern. This target is set despite the mixed signals from the recent financial figures and the expectations surrounding the company’s supply capabilities and market demand. Based on InvestingPro’s comprehensive analysis, which includes over 30 additional financial metrics and insights available to subscribers, NVIDIA’s current market price appears to be near its Fair Value. Investors seeking deeper insights can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, NVIDIA Corporation reported strong financial results for the fourth quarter of 2025, surpassing analyst expectations with earnings per share of $0.89 and revenue of $39.3 billion. This performance was driven by a 78% year-over-year increase in revenue, notably from the data center segment, which contributed $35.6 billion. Looking ahead, NVIDIA forecasts Q1 2026 revenue to reach $43 billion, reflecting ongoing growth in AI demand. Cantor Fitzgerald maintained its Overweight rating on NVIDIA, projecting significant earnings per share growth in the coming years, with a price target of $200. Jefferies also reaffirmed a Buy rating, noting that NVIDIA’s Blackwell architecture revenue reached $11 billion, exceeding initial guidance. Despite some concerns about lower gross margins during the Blackwell ramp-up, Jefferies anticipates a rebound as production reaches full capacity. Analyst firms highlighted upcoming events, such as the GPU Technology Conference, which may provide further insights into NVIDIA’s progress and market position. These recent developments indicate a positive outlook for NVIDIA as it continues to expand its AI and data center offerings.
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