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Investing.com - TD Cowen maintained its Buy rating and $235.00 price target on NVIDIA (NASDAQ:NVDA), currently trading near its 52-week high at $181.60, following what the firm described as "lackluster" quarterly results by the chipmaker’s recent standards. According to InvestingPro data, NVIDIA commands a substantial $4.43 trillion market cap with an impressive 86.17% revenue growth over the last twelve months.
The company reported a mild earnings beat, supported by stronger performance in its Gaming segment and expected strength in Networking, though the guidance fell short of the approximately $55 billion anticipated by investors. With a P/E ratio of 57.81 and an Excellent Financial Health Score from InvestingPro, NVIDIA maintains strong fundamentals despite high valuations.
Compute revenue declined sequentially for the first time since the emergence of ChatGPT, primarily due to a roughly $4 billion decline in H20 revenues, according to TD Cowen’s analysis.
Excluding H20 products, Compute revenue would have grown approximately 12% quarter-over-quarter into the July quarter and is accelerating in the October quarter, suggesting continued underlying strength.
TD Cowen noted that demand remains robust for Nvidia products, with the Blackwell Ultra transition progressing smoothly and the Rubin product line on track, though investors were likely expecting more upside toward $7 earnings per share next year.
In other recent news, Nvidia’s financial and market outlook has been the focus of several investment firms, leading to adjustments in stock price targets and ratings. KeyBanc increased its price target for Nvidia to $230, highlighting the company’s second-quarter results, which were slightly above consensus. Although data center revenue did not meet expectations, there was significant growth in networking. Truist Securities also raised its target to $228, citing growth in AI despite sales results and guidance being slightly below expectations.
Jefferies maintained a Buy rating and adjusted its price target to $205, emphasizing Nvidia’s October guidance and potential revenue from China licenses. Mizuho reiterated its Outperform rating with a target of $205, projecting Nvidia’s continued dominance in AI training and inference chips for data centers. DA Davidson raised its target to $195, maintaining a Neutral rating, and pointed to mixed results in Nvidia’s data center revenue. These developments reflect ongoing interest and varying perspectives on Nvidia’s future performance in the semiconductor industry.
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