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Investing.com - Bernstein SocGen Group raised its price target on Nvidia (NASDAQ:NVDA) to $225.00 from $185.00 while maintaining an Outperform rating following the company’s second-quarter financial results. The semiconductor giant, now valued at $4.43 trillion, has demonstrated remarkable growth with revenue surging 86% year-over-year according to InvestingPro data.
Nvidia reported second-quarter revenue of $46.74 billion and earnings per share of $1.05, exceeding analyst expectations of $46.23 billion and $1.01, respectively. The company’s gaming segment generated $4.3 billion in revenue, significantly above market forecasts. InvestingPro analysis shows the company maintains excellent financial health with strong profitability metrics, including a robust return on assets of 76%.
The data center segment, which accounts for the bulk of Nvidia’s business, reported $41.1 billion in revenue, roughly in line with expectations. Compute revenue declined slightly quarter-over-quarter due to reduced sales of H20 chips in China, while Blackwell platform sales increased approximately 17% and networking revenue jumped 46% quarter-over-quarter.
Gross margins reached 73.5%, above expectations, with about 40 basis points of benefit coming from the release of H20 parts sold to non-China customers. Even without this benefit, gross margins and earnings per share would have exceeded analyst forecasts.
Bernstein noted that while Nvidia’s guidance might be slightly below the most optimistic expectations, it represents "very respectable" projections that don’t rely on China sales for growth and indicates a significant acceleration in Blackwell platform deployment in the coming quarter. With an excellent financial health score and over 20 additional key insights available on InvestingPro, investors can access comprehensive analysis including detailed valuation metrics and growth projections.
In other recent news, Nvidia has reported quarterly results that exceeded expectations, with a notable performance in its Gaming segment. The company’s revenue guidance for the upcoming quarter is set at $54 billion, surpassing the consensus estimate of $52.6 billion. Despite this positive outlook, some investors had hoped for even stronger figures. Several analyst firms have weighed in following these developments. Cantor Fitzgerald reiterated its Overweight rating with a $240 price target, while Stifel maintained a Buy rating with a $212 target. Rosenblatt increased its price target to $215 from $200, highlighting the ramp-up of Nvidia’s Grace Blackwell-based racks. Needham also reiterated a Buy rating and a $200 target, noting challenges in China but commending the better-than-expected results. Wolfe Research raised its price target to $230, acknowledging Nvidia’s strong quarterly performance while pointing out the exclusion of China revenue due to geopolitical issues.
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