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Investing.com - Raymond James has reiterated its Strong Buy rating on Nvidia (NASDAQ:NVDA) with a price target of $272.00, following the chipmaker’s memo addressing fraud allegations. This aligns with the broader analyst consensus of 1.32 (Strong Buy) and targets ranging from $140 to $352. According to InvestingPro data, 33 analysts have recently revised their earnings expectations upward for the upcoming period.
The memo specifically rebuts claims made by investor Michael Burry and an article titled "The Algorithm That Detected a $610B Fraud," which had raised concerns about circular financing, revenue quality, inventory trends, and regulatory risks.
In its response, Nvidia clarified that it does not use special purpose vehicles or rely on vendor financing, with strategic investments representing approximately $3.7 billion in Q3 and $4.7 billion year-to-date, accounting for only 7% and 3% of revenue respectively. The company also highlighted its $23.8 billion cash flow from operations and $22.1 billion free cash flow in Q3. InvestingPro data shows Nvidia’s strong financial position with a current ratio of 4.47 and a moderate debt-to-equity ratio of 0.09, indicating liquid assets well exceed short-term obligations.
Raymond James noted that Nvidia’s core thesis remains intact, supported by its software moat through CUDA/CUDA-X, full-stack systems, and annual platform cadence. The firm projects peak Blackwell shipments at approximately 6.9-7.8 million chips in calendar year 2026/fiscal year 2027. This outlook is supported by Nvidia’s impressive 65% revenue growth over the last twelve months to $187.1 billion, with analysts forecasting 63% growth for the current fiscal year.
The analysis identified power availability, grid lead times, ramp complexity, and potential slowdown in hyperscaler capital expenditure as the principal concerns for Nvidia, rather than the fraud allegations that prompted the company’s detailed rebuttal. While InvestingPro data indicates Nvidia’s stock price movements are quite volatile with a beta of 2.27, the company maintains a strong overall financial health score of 3.66 (rated as "GREAT"). Investors seeking deeper insights can access Nvidia’s comprehensive Pro Research Report, available among 1,400+ top US equities analyzed on InvestingPro.
In other recent news, Nvidia has reported quarterly earnings that surpassed market expectations, providing a $2 billion upside for its third quarter. The company also issued guidance that was nearly $3 billion above consensus estimates, demonstrating strong financial performance. UBS maintained its Buy rating on Nvidia, citing the company’s robust financial guidance and rising demand for AI technologies. The firm projects Nvidia could achieve $350-400 billion in revenue and over $9 in earnings per share for the year 2026. Raymond James resumed coverage of Nvidia with a Strong Buy rating, emphasizing the company’s leadership in AI computing and strategic updates in GPU architecture. Benchmark raised its price target for Nvidia to $250, acknowledging the company’s impressive AI results. TD Cowen reiterated its Buy rating, highlighting Nvidia’s strong market position and recent earnings success. Additionally, Authid Inc announced its participation in the NVIDIA Connect Program, marking a significant step in leveraging Nvidia’s AI and machine learning frameworks for enhanced security solutions.
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