Trump announces 100% chip tariff as Apple ups U.S. investment
On Thursday, TD Cowen analysts showed increased confidence in NVIDIA (NASDAQ:NVDA), raising their price target on the company’s shares to $175 from the previous $140, while reaffirming their Buy rating. The adjustment follows NVIDIA’s recent financial performance, which surpassed investor expectations even after accounting for H20 write-downs. According to InvestingPro data, NVIDIA maintains an EXCELLENT financial health score and a perfect Piotroski Score of 9, indicating strong operational efficiency and robust financial position.
The firm highlighted that concerns over rack-scale performance are diminishing due to positive feedback on NVIDIA’s NVLink (NVL) deployments among major cloud service providers, commonly referred to as hyperscalers. Despite ongoing skepticism regarding the transition to the new GB300 series and persistent worries about cloud market saturation, TD Cowen remains optimistic about NVIDIA’s prospects. This optimism appears well-founded, as InvestingPro data shows impressive revenue growth of 114.2% over the last twelve months, with analysts forecasting continued strong sales growth ahead.
In their commentary, TD Cowen analysts noted, "A strong print and guide was well above investor expectations after accounting for H20 write-downs. Rack-scale concerns are receding with strong commentary on NVL deployments at hyperscalers." They also pointed out that while some investors may now focus on potential challenges related to the GB300 transition, their evaluation leads to a continued positive outlook. The company’s strong market position is reflected in its robust gross profit margin of 75% and return on equity of 119%.
The firm’s statement continued, "Bears will likely now shift to the GB300 transition as the next wall of worry, in addition to perpetual cloud digestion concerns. Our numbers go higher again." This suggests that despite potential headwinds, the analysts see a path for NVIDIA’s continued growth and success.
In conclusion, TD Cowen reiterated their Buy rating and labeled NVIDIA as their Top Compute Pick, signaling their belief in the company’s robust position in the computing sector. The raised price target to $175 reflects their revised expectations for NVIDIA’s stock performance in light of recent developments and the company’s strategic positioning.
In other recent news, NVIDIA Corporation has reported significant financial results and developments. The company announced revenue for the April quarter at $44.1 billion, surpassing the consensus estimate of $43.3 billion. NVIDIA also provided guidance for the July quarter, projecting revenues around $45 billion, which aligns with market expectations. Analysts from Mizuho (NYSE:MFG) and Cantor Fitzgerald have adjusted their price targets for NVIDIA, citing strong revenue performance and an optimistic outlook for future quarters. Mizuho raised its target to $170, while Cantor Fitzgerald maintained a $200 target, both highlighting NVIDIA’s robust data center revenues and the successful ramp-up of Blackwell products.
NVIDIA’s networking revenue has also shown growth, with NVLink and Spectrum-X contributing significantly. Jefferies, Evercore ISI, and DA Davidson have provided their perspectives, with Jefferies maintaining a Buy rating, Evercore ISI an Outperform rating, and DA Davidson a Neutral stance. Jefferies emphasized the resolution of inventory issues and the potential for NVIDIA to exceed expectations in the latter half of 2025. Evercore ISI noted the strong performance of NVIDIA’s Data Center business, which grew by 73% year-over-year, and the ongoing deployment of Blackwell GPUs by major hyperscalers.
Meanwhile, DA Davidson highlighted uncertainties surrounding NVIDIA’s business in China, which have impacted its financial results. Despite these challenges, NVIDIA’s management remains confident about the future, particularly with the rapid adoption of their latest GPU, Blackwell. The company is also poised to benefit from a surge in demand for AI technologies, as noted by Cantor Fitzgerald. Overall, these developments reflect a dynamic period for NVIDIA, with strong financial performance and strategic advancements in its product offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.