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On Thursday, Evercore ISI reaffirmed its positive stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining an Outperform rating and a price target of $190.00. The semiconductor giant, currently valued at $3.29 trillion with impressive revenue growth of 114.2% over the last twelve months, reported earnings per share (EPS) for the April quarter that exceeded expectations by 9% and provided a July quarter EPS outlook slightly below consensus, at 1% less. According to InvestingPro analysis, NVIDIA is currently trading near its Fair Value.
The research firm addressed concerns that have been weighing on investors’ minds, such as potential delays in the Blackwell chip/system, a digestion period for capital expenditures by hyperscalers, and threats from Application-Specific Integrated Circuits (ASICs). Evercore ISI noted that NVIDIA’s Data Center (DC) business grew by 73% year-over-year and that the Blackwell system yields are on the rise, contributing to 70% of DC revenues. InvestingPro data reveals NVIDIA’s exceptional financial health with a perfect Piotroski Score of 9 and an industry-leading gross profit margin of 75%.
According to Evercore ISI, major hyperscalers are currently deploying an average of 72,000 Blackwell Graphics Processing Units (GPUs) each week. Additionally, the firm anticipates that NVIDIA’s next-generation Blackwell chip, the GB300, is expected to begin ramping up production later in the current quarter. These observations align with Evercore ISI’s own findings, which suggest that hyperscalers are not reducing their capital expenditures, are seeking larger Language Learning Models (LLMs), and that there is growing demand from Tier 2 Cloud Service Providers (CSPs) both in the United States and internationally. NVIDIA continues to be the preferred choice in the AI ecosystem, as per Evercore ISI’s commentary. For deeper insights into NVIDIA’s market position and 18 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, NVIDIA Corporation reported strong fiscal Q1 2025 earnings, with an earnings per share (EPS) of $0.96, surpassing the forecast of $0.93, and revenue reaching $44.1 billion, exceeding the projected $43.31 billion. Despite export restrictions affecting its H20 product, NVIDIA’s first-quarter results beat expectations, and the company provided a second-quarter revenue guidance of $4.5 billion. Analysts from Truist Securities, Stifel, KeyBanc, and Raymond (NSE:RYMD) James have maintained positive ratings on NVIDIA’s stock, citing the company’s robust financial performance and growth prospects in the artificial intelligence sector.
Truist Securities raised NVIDIA’s stock target to $210, maintaining a Buy rating, while Stifel reiterated a Buy rating with a $180 target, highlighting NVIDIA’s adjusted gross margin of 71.3%. KeyBanc kept an Overweight rating with a $190 target, emphasizing the company’s strong data center revenue growth. Raymond James increased its price target to $165, maintaining a Strong Buy rating, and noted NVIDIA’s successful production ramp-up of its Blackwell racks, which positively impacted gross margins.
NVIDIA’s data center revenue saw a significant year-on-year increase of 73%, with the gaming sector also showing strong performance. The company is optimistic about its future, expecting Q2 revenue to be around $45 billion, with plans to expand its AI infrastructure and enterprise solutions. Despite challenges in the China market due to export controls, NVIDIA remains confident in its growth trajectory, supported by its innovative product launches and strategic partnerships.
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