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Investing.com - Needham has reiterated its Buy rating and $200.00 price target on Nvidia (NASDAQ:NVDA) following the company’s fiscal second-quarter results. According to InvestingPro data, NVDA has demonstrated remarkable growth with revenue surging 86% year-over-year, though current valuations suggest the stock is trading above its Fair Value.
The chipmaker reported better-than-expected results for the quarter, while its third-quarter revenue guidance was in line with analyst expectations, notably excluding any revenue from H20 chips in China. With an excellent Financial Health Score of 3.77 from InvestingPro and strong profitability metrics, including a 70% gross margin, NVDA continues to demonstrate robust operational performance.
Needham highlighted that no H20 China sales occurred in the fiscal second quarter, and none are assumed in the third-quarter guidance. The firm noted management believes it could ship $2-5 billion of H20 in the third quarter if geopolitical issues are resolved, with potential upside if additional licenses are granted.
The research firm also pointed out that all six of Nvidia’s Rubin chips are in fabrication, which Needham believes puts Rubin on track for deployment in the second half of calendar 2026.
Blackwell-related products, spanning compute and networking, grew 17% quarter-over-quarter, while networking specifically saw 46% sequential growth, which was stronger than anticipated, according to Needham’s analysis.
In other recent news, Nvidia’s fiscal second and third quarter results slightly exceeded expectations, despite the exclusion of China revenue due to ongoing geopolitical challenges. Wolfe Research responded by raising its price target for Nvidia to $230, maintaining an Outperform rating. William Blair also reiterated its Outperform rating after Nvidia’s earnings report, noting the absence of H20 contributions due to uncertainties around China export licenses. BofA Securities increased its price target to $235, highlighting Nvidia’s dominant position in the AI infrastructure market and strong free cash flow margins. Goldman Sachs maintained its Buy rating with a $200 price target, acknowledging Nvidia’s in-line quarter and guidance. Morgan Stanley adjusted its price target to $210, recognizing Nvidia’s projection of $7 billion in additional quarterly revenue, a significant growth forecast not including China sales. These developments reflect Nvidia’s robust performance and strategic positioning in the market.
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