NVIDIA stock price target raised to $205 at Truist Securities

On Thursday, Truist Securities updated their outlook on NVIDIA (NASDAQ:NVDA) shares, raising the price target marginally from $204.00 to $205.00, while retaining a Buy rating on the stock. The semiconductor giant, now commanding a market capitalization of $3.22 trillion, maintains a perfect Piotroski Score of 9 according to InvestingPro data, indicating exceptional financial strength. Truist’s analysis highlighted several key operational developments that suggest a positive trajectory for the company.

The first point of note from Truist is the delivery and implementation of the GB200 NVL72 in volume, which aligns with previous expectations. Additionally, following the release of DeepSeek, NVIDIA has reportedly experienced a surge in customer interest and demand. This momentum is reflected in the company’s impressive 152.44% revenue growth over the last twelve months, with industry-leading gross profit margins of 75.86%, as reported by InvestingPro. This is seen as a significant indicator of the company’s market position and potential for growth.

Furthermore, Truist has interpreted NVIDIA’s operational expenditure (OpEx) commentary as a favorable sign for future sales growth. This insight, coupled with the company’s sustained commitment to innovation and its entrenched ecosystem, underscores NVIDIA’s status as a leading AI enterprise. The company’s overall financial health is rated as "GREAT" by InvestingPro, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 top US stocks.

Truist’s outlook is not just based on current performance but also includes long-term projections. The firm has adjusted its forecast for NVIDIA’s CY26 earnings per share (EPS), raising the estimate slightly to $5.87 from $5.83. The new price target of $205 is based on a 35x multiple of these anticipated earnings, maintaining a 15x discount relative to high-growth semiconductor peers.

In summary, Truist Securities’ stance on NVIDIA reflects confidence in the company’s ongoing innovation, market position, and investment in technology. With operational updates showing promise and financial projections indicating growth, the firm’s analysts have provided a slightly improved valuation of NVIDIA’s stock.

In other recent news, NVIDIA Corporation has reported significant financial results and strategic developments. The company’s fiscal fourth-quarter revenue reached approximately $11 billion, with a notable 16% quarter-over-quarter increase in its Data Center segment. NVIDIA’s fiscal fourth-quarter sales soared by 78% year-over-year to $39.3 billion, surpassing consensus estimates by 3%. Analysts from BofA Securities have increased their price target for NVIDIA to $200, citing the company’s strong position in the AI market and its impressive fiscal performance.

Morgan Stanley (NYSE:MS) also raised NVIDIA’s price target to $162, maintaining an Overweight rating and acknowledging the company’s successful integration of Hopper products. Piper Sandler reaffirmed an Overweight rating with a $175 price target, highlighting the high demand for NVIDIA’s Blackwell product and the company’s robust first-quarter performance. Evercore ISI maintained an Outperform rating with a $190 target, noting a 5% earnings per share beat for the January quarter and a 1% revenue outlook increase for the April quarter.

Despite challenges such as gross margin pressures and costs associated with Blackwell production, NVIDIA’s guidance for the first fiscal quarter was set at $43 billion, approximately $1 billion ahead of expectations. Stifel analysts maintained a Buy rating with a $180 target, emphasizing the anticipated growth following the ramp-up of Blackwell systems. Overall, these developments underscore NVIDIA’s resilience and strategic advancements in the competitive semiconductor industry.

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