Needham maintains NVIDIA stock Buy rating, $160 target

On Thursday, Needham analysts confirmed their positive stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a $160.00 price target. The endorsement comes after NVIDIA surpassed expectations and signaled further growth, particularly with the rapid deployment of their Blackwell architecture and increasing demand for inference computing. This optimism aligns with InvestingPro data showing impressive revenue growth of 152% year-over-year and a perfect Piotroski Score of 9, indicating exceptional financial strength.

NVIDIA has recently faced market skepticism due to rumors of product overheating and concerns over strategic shifts by industry partners like Microsoft (NASDAQ:MSFT). However, the company’s latest performance has demonstrated resilience and adaptability, with initial Blackwell revenue significantly exceeding forecasts. Needham believes that NVIDIA’s diverse range of demand drivers should mitigate any short-term apprehensions. With a market capitalization of $3.22 trillion and an overall "GREAT" financial health score according to InvestingPro, NVIDIA maintains its position as a prominent player in the semiconductor industry. Discover 16 additional key insights about NVIDIA with an InvestingPro subscription.

The firm has also adjusted its gross margin estimates for NVIDIA, now accounting for a 100 basis points lower bottom and anticipating a slower ascent to approximately 75%. This revision is attributed to the complexity of NVIDIA’s customizable rack design, which includes over 1.5 million components.

Furthermore, Needham has observed a notable increase in inference demand, attributed to new reasoning models that require significantly more computational power. This trend is expected to contribute to NVIDIA’s continued growth and supports the firm’s positive outlook on the stock’s future performance.

In other recent news, NVIDIA Corporation has reported strong financial results, with the company’s Blackwell product generating $11 billion in revenue for the January quarter, surpassing expectations. NVIDIA’s sales reached $39 billion and $43 billion for the January and April quarters, slightly exceeding forecasts from Citi, which maintained a Buy rating with a $163 price target. UBS also reiterated a Buy rating, setting a $185 price target, and noted that the Blackwell project is advancing ahead of schedule. Despite a dip in gross margins, NVIDIA expects them to rebound to the mid-70% range by year-end.

Raymond (NSE:RYMD) James maintained an Outperform rating with a $170 target, highlighting NVIDIA’s favorable first-quarter forecast and the performance of the Blackwell product. Evercore ISI echoed this sentiment, maintaining an Outperform rating with a $190 target, emphasizing NVIDIA’s EPS beating expectations and a strong demand outlook. Truist Securities slightly raised its price target to $205, citing positive operational developments and an increased forecast for NVIDIA’s 2026 EPS. Across the board, analysts are optimistic about NVIDIA’s future growth, particularly in AI and emerging technologies, despite some short-term challenges.

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