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On Thursday, Jefferies reaffirmed a Buy rating on NVIDIA stock (NASDAQ:NVDA), maintaining a $185.00 price target. The firm’s analysts highlighted NVIDIA’s continued momentum, with Blackwell revenue surpassing the initial "few billion" guidance. This impressive performance, coming from a company that has already achieved 152.44% revenue growth over the last twelve months, persists despite supply chain concerns affecting many in the tech industry. According to InvestingPro data, NVIDIA maintains a "GREAT" financial health score, reflecting its robust market position with a $3.22 trillion market capitalization.
NVIDIA’s Blackwell revenue, which reached $11 billion, is significantly higher than expected, setting a positive tone for the company’s financial year. Analysts at Jefferies expect the transition from NVIDIA’s previous architecture, Hopper, to Blackwell to be smooth, with the revenue crossover anticipated in the first quarter. The Blackwell ultra (B300) is slated for release in the second half of the year, which is expected to further bolster the company’s performance. InvestingPro analysis reveals 18 additional key insights about NVIDIA’s growth trajectory and market position, available to subscribers.
Although the rapid Blackwell ramp-up resulted in gross margins (GMs) that were lower than Jefferies’ forecasts—falling into the low 70s percentage range—the firm anticipates a rebound as Blackwell reaches full production capacity, with GMs predicted to return to the mid-70s later in the year. This aligns with NVIDIA’s impressive track record, as InvestingPro data shows the company maintaining a robust gross profit margin of 75.86% over the last twelve months.
One area of concern noted was networking, where NVIDIA saw another down quarter due to the transition to Blackwell and the shift from InfiniBand to Ethernet with SpectrumX. However, Jefferies projects a return to growth in the first quarter, driven by NVLink revenue from the GB200 product.
Jefferies analysts concluded that the primary factor influencing NVIDIA’s revenue this year would be the supply ramp of Blackwell, especially as hyperscaler capital expenditures are on the rise. The firm’s outlook is optimistic, citing a stronger-than-expected supply ramp. With the January to April transition gap now bridged, NVIDIA is believed to be on a smoother path, with the upcoming GPU Technology Conference (GTC) potentially serving as another positive catalyst for the company.
In other recent news, NVIDIA Corporation announced its Q4 2025 earnings, reporting an EPS of $0.89, surpassing analyst expectations of $0.84. The company’s revenue also exceeded projections, reaching $39.3 billion compared to the anticipated $38.02 billion, marking a 78% year-over-year increase. This growth was largely driven by the data center segment, which contributed $35.6 billion, a 93% increase from the previous year. NVIDIA has forecasted Q1 2026 revenue to be around $43 billion, with continued growth anticipated in AI demand. Gross margins for Q4 were reported at 73%, with expectations for further improvement as the company ramps up production of its Blackwell architecture. Analysts from various firms noted NVIDIA’s strong performance, with some highlighting the company’s strategic focus on AI and data center innovations. Additionally, NVIDIA’s introduction of new products, such as the GeForce RTX 50 series GPUs, reflects its ongoing commitment to technological advancement. The company continues to face challenges, including supply chain constraints and market competition, but remains optimistic about its growth trajectory.
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