KeyBanc maintains NVIDIA stock Overweight with $190 target

Published 19/03/2025, 14:26
© Reuters

On Wednesday, KeyBanc Capital Markets maintained a positive outlook on NVIDIA Corporation (NASDAQ:NVDA) shares, reiterating an Overweight rating and a $190.00 price target. The endorsement comes after NVIDIA’s CEO, Jensen Huang, delivered a keynote speech at the GPU Technology Conference (GTC), announcing several new developments expected to bolster the company’s performance in the coming years. With a market capitalization of $2.82 trillion and a perfect Piotroski Score of 9 according to InvestingPro, NVIDIA continues to demonstrate strong financial health and market leadership in the semiconductor industry.

The announcements included the introduction of the Blackwell Ultra (GB300) NVL72, which is anticipated to deliver 1.5 times the performance of its predecessor, the GB200 NVL72, and is slated for release in the second half of 2025. NVIDIA also unveiled the Vera Rubin NVL144, which combines the next-generation ARM-based CPU named Vera with the Rubin GPU, boasting 144 GPUs per rack. This new offering is expected to provide 3.3 times the performance of the GB300 NVL72 and is targeted for launch in the second half of 2026. The company’s impressive 114.2% revenue growth and 75% gross profit margin in the last twelve months reflect its strong market position and execution capability.

Additionally, NVIDIA announced a Co-packaged Optical (CPO) solution at 1.6TB, with shipping expected to commence in the second half of 2025. KeyBanc highlighted NVIDIA’s consistent efforts to lead in AI performance through its annual roadmap updates. The firm also noted that the Blackwell Ultra (GB300) would benefit from the same rack architecture as the GB200, allowing for a smoother transition and potentially faster ramp-up of GB NVL rack shipments in the latter half of 2025.

KeyBanc’s analysis following the GTC suggests that NVIDIA’s strategic advancements should enable the company to maintain its leadership in the AI sector. The firm’s stance on NVIDIA remains unchanged, with the expectation that these new products will contribute positively to the company’s growth trajectory in the near future. With 24 analysts revising earnings estimates upward and a return on equity of 119%, InvestingPro data reveals strong fundamentals supporting NVIDIA’s continued growth. For deeper insights into NVIDIA’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, NVIDIA has unveiled the Isaac GR00T N1, an open-source model for humanoid robots, designed to accelerate AI model training and reduce time-to-market. The introduction of this model is expected to drive early market adoption of humanoid robots, with the industry projected to reach nearly $4 billion by 2028. During NVIDIA’s GTC 2025 event, CEO Jensen Huang emphasized the company’s commitment to advancing AI computing power, showcasing new hardware and software innovations. These include the Blackwell Ultra and Rubin architectures, and the Dynamo inferencing software, which Stifel analysts noted as pivotal in optimizing reasoning models in data centers.

Stifel maintained a Buy rating on NVIDIA, setting a price target of $180, highlighting the company’s strategic focus on AI infrastructure. Cantor Fitzgerald also maintained a Neutral rating with a $200 price target, impressed by NVIDIA’s advancements in large-scale AI inference. The analysts noted NVIDIA’s efforts in enhancing AI inference efficiency, vital for AI processing pipelines. NVIDIA’s roadmap for future product generations promises significant performance enhancements, with a projected data center revenue opportunity of at least $450 billion by 2028.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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