JPMorgan maintains NVIDIA stock Overweight with $170 target

On Thursday, JPMorgan reiterated its Overweight rating on NVIDIA shares (NASDAQ:NVDA), with a steady price target of $170.00. According to InvestingPro data, NVIDIA boasts an excellent financial health score and a perfect Piotroski Score of 9, indicating strong operational efficiency. The company’s stock has shown a 17.4% return over the past year, though current analysis suggests it may be slightly overvalued at current levels. NVIDIA outperformed expectations by posting April-quarter revenues of $44 billion, surpassing both JPMorgan’s and the consensus estimates of $43 billion. This achievement came despite approximately $2.5 billion in lost GPU shipments to China following the restrictions that began on April 9th. However, NVIDIA’s margins and earnings per share were affected by $4.5 billion in H20 inventory write-downs and purchase commitments, resulting in gross margins of 61% compared to the anticipated 71%, and an EPS of $0.81, below the consensus of $0.93.

For the July quarter, NVIDIA’s revenue guidance is set at $45 billion, which is under the consensus estimate of $46 billion but exceeds JPMorgan’s forecast of $41-$43 billion, taking into account the H20 shipment constraints. The company’s impressive revenue growth of 114.2% in the last twelve months and robust gross profit margin of 75% demonstrate its strong market position. Want deeper insights? InvestingPro offers 18 additional key tips about NVIDIA’s performance and prospects. Excluding H20 shipments, JPMorgan estimates that NVIDIA’s datacenter revenues could grow by about 16% quarter-over-quarter due to robust customer spending on AI and accelerated compute initiatives and the strong ramp-up of the Blackwell datacenter platform. Shipments of Blackwell are expected to increase throughout the year, and the launch of the next-generation Blackwell Ultra is anticipated toward the end of the current quarter.

In the networking segment, NVIDIA saw a significant increase in revenues both quarter-over-quarter and year-over-year in the April quarter, driven by strong NVLink switch content within NVL72 rackscale platforms. Although total trailing twelve-month networking revenues grew by 37% compared to a 113% increase in compute revenues, the sustainability of this growth in networking will be closely monitored.

Demand for Blackwell remains high, with supply likely to lag behind for several quarters. Despite this, NVIDIA and its partners are now delivering 1000 NVL72 racks per week, showcasing solid production execution. The gross margin guidance of 72% was 30 basis points above consensus expectations, reflecting the aggressive ramp-up of the higher-margin Blackwell platforms and improved yield and cost dynamics.

JPMorgan highlights NVIDIA’s competitive edge, noting that the company maintains a 1-2 step lead over rivals with its comprehensive silicon, hardware, and software platforms, and strong ecosystem. This leadership is reflected in NVIDIA’s strong financial metrics, with a current ratio of 4.44 indicating excellent liquidity and moderate debt levels. For comprehensive analysis of NVIDIA and 1,400+ other stocks, including detailed valuation metrics and expert insights, check out the Pro Research Report available on InvestingPro. This lead is expected to widen with the company’s rapid new product launches and increased product segmentation over time. With the recent elimination of the diffusion rule and announcements of mega datacenter build-outs in various regions, NVIDIA is anticipated to see continued strong growth through 2026. JPMorgan has adjusted its forward estimates, introduced its 2026 estimates, and reiterated its December 2025 price target of $170, maintaining an Overweight rating on NVIDIA stock.

In other recent news, NVIDIA has reported strong financial results, with first and second fiscal quarter revenues of $44 billion and $45 billion, respectively. These results are in line with estimates from Deutsche Bank (ETR:DBKGn), which highlighted a $2.5 billion revenue headwind for the first quarter and an $8 billion headwind for the second quarter due to challenges in China. Citi analysts have raised NVIDIA’s price target to $180, noting the company’s Blackwell product line exceeded expectations with $24 billion in sales and projecting future gross margin improvements. Meanwhile, Deutsche Bank increased its price target to $145, maintaining a Hold rating, while Bernstein reiterated an Outperform rating with a $185 target, citing potential upside if NVIDIA navigates current restrictions effectively.

Summit Insights upgraded NVIDIA from Hold to Buy, emphasizing the company’s strong position in the AI and datacenter markets and the resolution of technical challenges with the Blackwell platform. TD Cowen also raised its price target to $175, reaffirming a Buy rating, and noted positive feedback on NVIDIA’s NVLink deployments among major cloud providers. The firm acknowledged ongoing concerns about the transition to the new GB300 series but remains optimistic about NVIDIA’s growth prospects. Across various analyses, NVIDIA’s strategic advancements in AI and data center technologies have been recognized as key factors in its continued market strength.

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