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Investing.com - Evercore ISI raised its price target on Nvidia (NASDAQ:NVDA) to $214.00 from $190.00 on Friday, while maintaining an Outperform rating on the stock. The company has demonstrated remarkable financial strength, with InvestingPro data showing an impressive 86% year-over-year revenue growth and a "GREAT" overall financial health score.
The research firm noted that Nvidia is currently trading at a next-twelve-month (NTM) P/E ratio of 33x, which is below its 8-year median of 36x. This valuation is only 6% above AMD (NASDAQ:AMD)’s 31x P/E and 10% below Broadcom (NASDAQ:AVGO)’s 37x.
Evercore ISI forecasts Nvidia’s earnings per share to grow by 48% in 2025 and 39% in 2026, resulting in a price-to-earnings growth (PEG) ratio well below parity, which the firm views as attractive.
The firm addressed investor concerns about Nvidia’s potential to increase its current 8% weighting in the S&P 500 Index, suggesting there is historical precedent for higher weightings.
Evercore ISI pointed to the PC and networking ecosystem of Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Dell (NYSE:DELL), and Cisco (NASDAQ:CSCO), which collectively captured a 14% weighting at their peak, suggesting this could serve as a benchmark for Nvidia’s vertically integrated chip, software, hardware, and networking ecosystem.
In other recent news, several analysts have made notable updates concerning Nvidia and Ibiden. UBS has increased its price target for Nvidia to $205, citing anticipated growth in the company’s data center segment. UBS projects Nvidia’s fiscal second-quarter revenue to reach approximately $46 billion, with expectations for the third quarter reaching up to $57 billion if including China. Oppenheimer has reiterated its Outperform rating on Nvidia, suggesting potential upside to consensus estimates for second-quarter sales and earnings per share. HSBC also raised Nvidia’s price target to $200, driven by a larger-than-expected market for AI GPUs. KeyBanc has adjusted its price target for Nvidia to $215, anticipating strong second-quarter results but slightly conservative third-quarter guidance due to revenue uncertainties from China.
In another development, Bernstein upgraded Ibiden to Outperform, highlighting the company’s potential benefit from growth in AI chip substrates. This upgrade is particularly tied to the use of these substrates in Nvidia’s graphics processing units. These recent developments reflect ongoing interest and analysis from various firms regarding Nvidia’s and Ibiden’s roles in the evolving tech landscape.
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