Evercore ISI maintains NVIDIA stock Outperform with $190 target

On Thursday, Evercore ISI sustained their positive stance on NVIDIA (NASDAQ:NVDA) shares, maintaining an Outperform rating and a $190.00 price target. The firm’s analyst highlighted NVIDIA’s strong performance, noting a 5% earnings per share (EPS) beat for the January quarter and a 1% revenue outlook raise for the April quarter. The analyst’s remarks emphasized the successful ramp-up of NVIDIA’s Blackwell processor and a robust demand outlook. InvestingPro data supports this positive outlook, revealing impressive year-over-year revenue growth of 152% and a perfect Piotroski Score of 9, indicating strong financial health. The company maintains a robust gross profit margin of 76%, demonstrating operational efficiency.

NVIDIA reported Blackwell revenues of $11 billion in the January quarter, surpassing expectations. Management at NVIDIA also provided insights into the company’s visibility for the calendar year 2025 (CY25), projecting a rebound in gross margins (GMs) to the mid-70% range by the end of the year. Despite some initial concerns, Blackwell accounted for 34% of Data Center Compute revenues, which was ahead of Evercore ISI’s estimates. With a market capitalization of $3.22 trillion and an overall "GREAT" financial health rating according to InvestingPro, NVIDIA continues to demonstrate strong market leadership.

The firm underscored Blackwell’s flexible architecture and its superior performance in reasoning AI model inference. According to the analyst, Blackwell delivers 25 times higher token throughput and 20 times lower cost compared to NVIDIA’s H100 for large language models (LLMs) and mixture of experts (MoE) models. The firm’s channel checks indicated that the programmable nature of NVIDIA’s GPUs continues to be an advantage for meeting the rapidly evolving needs of AI computing. For a deeper understanding of NVIDIA’s market position and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 18 additional ProTips and extensive financial metrics.

In other recent news, NVIDIA Corporation’s financial results have captured significant attention as they exceeded Wall Street’s expectations, with fourth-quarter sales surpassing forecasts by $1.2 billion and first-quarter sales by $1 billion, as reported by Oppenheimer. The company’s Data Center revenue reached $35.6 billion, marking a 16% quarter-over-quarter increase and a 93% year-over-year rise, largely fueled by the Blackwell technology, according to KeyBanc. Despite these gains, NVIDIA’s gross margin for the first quarter was slightly lower than anticipated at 71%, attributed to initial costs of the Blackwell ramp-up, but analysts expect margins to improve in the future.

In terms of analyst ratings, TD Cowen reiterated a Buy rating with a $175 price target, citing NVIDIA’s strategic advantage in the Datacenter business. Oppenheimer also maintained an Outperform rating with a $175 target, highlighting NVIDIA’s robust position within the AI industry. KeyBanc kept an Overweight rating with a $190 target, expressing optimism about the company’s earnings and guidance. Meanwhile, DA Davidson held a Neutral stance with a $135 target, acknowledging mixed financial outcomes but noting strong demand for NVIDIA’s Blackwell systems.

Cantor Fitzgerald maintained an Overweight rating with a $200 target, projecting significant EPS growth in the coming years. The firm emphasized the transformative impact of NVIDIA’s technology on AI compute demand and highlighted key upcoming events that could provide further insights into the company’s progress. These developments reflect NVIDIA’s continued influence and strategic positioning in the technology sector.

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