US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
Tuesday, Evercore ISI reiterated its Outperform rating and $190.00 price target on NVIDIA (NASDAQ:NVDA), ahead of the company’s earnings call scheduled for Wednesday. Evercore ISI believes the stock is a buy, despite it having underperformed the S&P 500 by 7% over the past month. NVIDIA shares had recovered 12% from their low on February 3, 2025, but concerns linger among investors.
Investors are wary about several factors that could impact NVIDIA’s performance, including the potential of DeepSeek to reduce AI demand, a shift in AI compute cycles from NVIDIA’s GPUs to ASICs, possible delays with Blackwell, and a slowdown in capital expenditures by hyperscale companies. However, InvestingPro analysis reveals strong fundamentals, including a perfect Piotroski Score of 9 and robust gross profit margins of 76%. Evercore ISI does not anticipate a significant beat or raise in NVIDIA’s upcoming earnings report.
The firm’s stance is that NVIDIA, trading at 30 times next twelve months’ (NTM) P/E, is the most affordable AI stock in its coverage. A slight beat or raise in the earnings, combined with optimistic commentary about future visibility and the progression of Blackwell in the second half of 2025, could act as a positive catalyst for the stock.
Evercore ISI’s analysis suggests that while the market has concerns, NVIDIA’s position in the AI sector and its valuation make it an attractive stock. The firm’s price target of $190.00 remains unchanged, reflecting confidence in NVIDIA’s market standing and potential growth. The upcoming earnings call will provide further insights into NVIDIA’s financial performance and strategic direction.
In other recent news, Nvidia Corporation has filed a lawsuit against EU regulators over their scrutiny of its acquisition of AI startup Run:ai. The lawsuit claims that the regulators exceeded their authority, although it will not impact the already approved transaction. Meanwhile, Cantor Fitzgerald has reiterated its Overweight rating on Nvidia, maintaining a price target of $200. The firm highlighted Nvidia’s consistent financial performance, noting its trend of surpassing revenue guidance by significant margins. Rosenblatt Securities also maintained a Buy rating with a $220 price target, anticipating a positive earnings report and an optimistic outlook for upcoming quarters. The firm is particularly interested in Nvidia’s new product line, Blackwell, which is expected to see increased shipments. Additionally, Nvidia participated in a funding round for Together AI, a startup that recently raised $305 million, boosting its valuation to $3.3 billion. The funding round was led by General Catalyst and included several other investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.