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On Thursday, KeyBanc Capital Markets maintained a positive stance on NVIDIA Corporation (NASDAQ:NVDA), reiterating an Overweight rating and a $190.00 price target for the company’s shares. The endorsement comes after NVIDIA’s recent financial disclosures, which KeyBanc considers to be robust, particularly the forecast for the second quarter ending in July. According to InvestingPro data, NVIDIA demonstrates excellent financial health with a perfect Piotroski Score of 9, indicating strong operational efficiency and financial stability. The company’s current market capitalization stands at $3.29 trillion, cementing its position as a dominant player in the semiconductor industry.
NVIDIA’s first quarter results, which concluded in April, along with the guidance for the upcoming second quarter, were highlighted as strong indicators of the company’s performance. KeyBanc noted that while NVIDIA’s second quarter projections exclude approximately $8 billion in revenue from H20 sales due to the China ban, the adjusted guidance would still represent significant revenue growth. If compared to the consensus estimates before the China ban, which stood at $47.9 billion, the adjusted revenue guidance would have been around $53 billion, surpassing expectations. InvestingPro analysis reveals impressive revenue growth of 114.2% over the last twelve months, with the company generating $130.5 billion in revenue.
The firm also pointed out NVIDIA’s success in the Data Center sector, where revenues from Blackwell products accounted for nearly 70% of the Data Center compute revenues, marking a 73% year-over-year increase. This substantial growth is partly attributed to the impressive manufacturing yields of the GB200 NVL72, which have seen marked improvements. NVIDIA has reported that hyperscale companies are deploying close to 1,000 NVL72 racks per week, equating to 72,000 Blackwell GPUs weekly. The company’s operational excellence is reflected in its impressive 75% gross profit margin and strong liquidity position, with a current ratio of 4.44.
KeyBanc analysts expressed confidence in NVIDIA’s financial health and operational achievements, indicating that they are in the process of refining their estimates based on the recently released results. The firm’s continued Overweight rating suggests that they believe NVIDIA’s stock will outperform the average returns of the broader market within the next 12 to 18 months. The $190.00 price target set by KeyBanc reflects this optimistic outlook for the company’s share value. While trading at a P/E ratio of 46.09, InvestingPro analysis indicates the stock is currently fairly valued. Discover more detailed insights and 18 additional ProTips about NVIDIA in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, NVIDIA Corporation reported strong fiscal Q1 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company achieved an EPS of $0.96, exceeding the forecast of $0.93, and posted revenue of $44.1 billion against a projected $43.31 billion. This performance was bolstered by a significant 73% year-on-year increase in data center revenue, reaching $39 billion. NVIDIA’s gaming sector also saw record revenue of $3.8 billion, marking a 48% sequential increase. In response to these results, Raymond (NSE:RYMD) James analyst Srini Pajjuri raised the price target for NVIDIA shares from $150 to $165, maintaining a Strong Buy rating. Pajjuri noted NVIDIA’s successful ramp-up of Blackwell racks and a recovery in its networking segment. The company also hinted at future projects requiring extensive AI infrastructure, indicating potential growth opportunities. Additionally, NVIDIA’s management addressed concerns regarding export controls, clarifying that most data center GPU revenue billed to Singapore was for U.S. customers.
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