Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, KeyBanc Capital Markets maintained its Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) shares, with a set price target of $190.00. The firm’s analyst highlighted NVIDIA’s fourth-quarter results for January, which, along with its first-quarter guidance for April, surpassed market expectations. According to InvestingPro data, NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial strength, with the platform’s overall financial health rating of "GREAT." The company experienced some setbacks as its Gaming segment fell short due to supply constraints.
NVIDIA’s Data Center revenue presented a strong performance, amounting to $35.6 billion, marking a 16% increase from the previous quarter and a 93% surge year-over-year. This performance aligns with InvestingPro data showing remarkable overall revenue growth of 152.44% in the last twelve months, with total revenue reaching $113.27 billion. This growth was significantly bolstered by the ramping up of Blackwell, NVIDIA’s latest technology, which contributed an impressive $11 billion in revenue during the fourth quarter.
Despite these gains, NVIDIA’s gross margin for the first quarter was reported at 71%, slightly lower than anticipated. The decrease was attributed to the initial costs associated with the Blackwell ramp-up. InvestingPro analysis shows the company maintains impressive gross profit margins of 75.86% over the last twelve months, supporting management’s confidence in returning to mid-70s gross margins in the second half of 2026. For deeper insights into NVIDIA’s financial metrics and 18 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
Additionally, the analyst noted NVIDIA’s discussion on DeepSeek, a cutting-edge reasoning model known as R1. This model employs reinforcement learning techniques and inference time scaling, which may necessitate up to 100 times more computing power than pre-training methods.
KeyBanc expressed optimism regarding NVIDIA’s recent earnings and forward-looking guidance. The firm is adjusting its estimates in light of the new financial information provided by NVIDIA, signaling continued confidence in the company’s performance trajectory.
In other recent news, NVIDIA Corporation reported impressive earnings for Q4 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.89 and revenue reaching $39.3 billion, higher than the anticipated $38.02 billion. The data center segment was a standout performer, contributing $35.6 billion, a 93% increase year-over-year. NVIDIA has also forecasted Q1 2026 revenue at $43 billion, highlighting continued growth in AI demand. DA Davidson maintained a Neutral rating on NVIDIA, citing strong data center revenue but expressing concerns over gross margin guidance, which fell short of expectations. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating with a $200 price target, projecting significant EPS growth and emphasizing NVIDIA’s advancements in AI compute demand. Jefferies also maintained a Buy rating with a $185 price target, noting the substantial revenue from NVIDIA’s Blackwell architecture, despite some challenges in networking. These developments underscore NVIDIA’s strategic focus on AI and data center innovations, positioning it as a leader in the AI computing infrastructure space.
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