Evercore ISI maintains NVIDIA stock Outperform rating, $190 target

Published 27/02/2025, 12:02
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On Thursday, Evercore ISI reiterated its Outperform rating and $190.00 price target on NVIDIA (NASDAQ:NVDA), following the company’s financial results for the January quarter. The firm’s analysts highlighted NVIDIA’s earnings per share (EPS) beating expectations by 5% and a modest 1% raise in the outlook for the April quarter. According to InvestingPro data, NVIDIA has achieved remarkable revenue growth of 152% year-over-year, with a perfect Piotroski Score of 9, indicating exceptional financial strength. They emphasized the successful ramp-up of NVIDIA’s Blackwell product and a strong demand outlook.

NVIDIA reported Blackwell revenues of $11 billion in the January quarter, surpassing expectations. Management provided assurances of clear visibility into the calendar year 2025. Despite a dip in gross margins (GMs), NVIDIA anticipates a rebound to the mid-70% range by the end of the year - notably, InvestingPro analysis shows the company maintaining impressive gross profit margins of 75.86% over the last twelve months. For deeper insights into NVIDIA’s financial metrics and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Blackwell, which represented 34% of Data Center Compute revenues, exceeded forecasts despite concerns about potential delays. The analysts noted that Blackwell’s flexible architecture and its performance in AI model inference—boasting 25 times higher token throughput and 20 times lower cost compared to the H100—are particularly noteworthy for Large Language Models (LLMs) and Mixture of Experts (MoE) models.

Channel checks have indicated that the programmable nature of NVIDIA’s GPUs continues to be a significant advantage as AI compute needs evolve rapidly. The firm’s analysts remain positive about NVIDIA’s positioning in the market, underpinned by the robust performance and adaptability of its products.

In other recent news, NVIDIA Corporation reported sales of $39 billion and $43 billion for the January and April quarters, respectively, slightly surpassing Citi’s projections. The company’s Blackwell product sales reached $11 billion, exceeding expectations from both Citi and UBS analysts. Despite gross margins being below expectations, NVIDIA aims to improve margins to mid-70% by the end of the fiscal year. Citi, UBS, and Wolfe Research all maintained Buy or Outperform ratings on NVIDIA, with price targets ranging from $163 to $185. Wolfe Research noted the absence of one-time factors in NVIDIA’s earnings, indicating a sustainable performance level. Bernstein raised its price target to $185, citing NVIDIA’s successful navigation of production challenges and continued high demand for its products. Analysts also highlighted NVIDIA’s role in the AI industry and the growing need for computing power, which is expected to drive future growth. The company’s management remains optimistic about maintaining strong demand and addressing supply chain concerns. These developments reflect NVIDIA’s ongoing strategic efforts in expanding its market position and product offerings.

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