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Investing.com - Craig-Hallum raised its price target on Nvidia (NASDAQ:NVDA) to $245.00 from $195.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently trading at $177.85, has shown remarkable momentum with a 45.4% return over the past six months and maintains excellent financial health according to InvestingPro metrics.
The firm cited robust AI demand trends despite the stock trading slightly lower in the aftermarket following Nvidia’s recent results and guidance. Craig-Hallum highlighted reasoning and agentic systems as key drivers for continued demand, noting these systems require significantly more computing power than previous generations. This aligns with Nvidia’s impressive 71.5% revenue growth over the last twelve months, reaching $165.2 billion.
The research firm pointed to capital expenditure plans from the four leading hyperscale data center companies as strong evidence for continued AI investment, with these companies viewing the risk of underinvesting in AI as greater than overinvesting. With a robust gross profit margin of 69.8% and strong cash flows, Nvidia appears well-positioned to capitalize on this trend. For deeper insights into Nvidia’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, which includes over 20 key investment tips and detailed analysis.
Craig-Hallum emphasized Nvidia’s system-level offerings, particularly in networking with NVLink and NCCL technologies, create "enormous performance differentiators" unlikely to be matched by competitors soon, supporting the firm’s positive outlook on medium-term data center growth at strong margins.
With Nvidia stock trading at a low 30s EV/EPS ratio and expectations for continued earnings growth, Craig-Hallum maintained its Buy recommendation while increasing the price target to $245.
In other recent news, Nvidia reported second-quarter revenue of $46.74 billion and earnings per share of $1.05, surpassing analyst expectations of $46.23 billion and $1.01, respectively. The company’s gaming segment performed particularly well, generating $4.3 billion in revenue, which was significantly above market forecasts. Despite facing export restrictions on its H20 GPUs for the Chinese market, Nvidia exceeded its original revenue guidance by $1.7 billion, reaching a total of $46.7 billion.
Following these results, several analyst firms have adjusted their price targets for Nvidia. Benchmark raised its price target to $220 from $190 while maintaining a Buy rating. Similarly, Bernstein SocGen Group increased its price target to $225 from $185 and maintained an Outperform rating. UBS and Stifel also reiterated their Buy ratings with price targets of $205 and $212, respectively.
Cantor Fitzgerald maintained its Overweight rating and a $240 price target, noting Nvidia’s revenue guidance of $54 billion for the October quarter, which exceeded the consensus estimate. These developments highlight the company’s strong performance despite challenges in the Chinese market.
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