US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
On Tuesday, Piper Sandler reaffirmed its positive stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining an Overweight rating alongside a price target of $175.00. The firm’s analyst, Harsh Kumar, projected that NVIDIA would surpass the estimates for the January quarter by approximately $1.8 billion in revenue. With the company’s impressive 152% year-over-year revenue growth and current market capitalization of $3.2 trillion, this anticipated beat is expected to signal a return to NVIDIA’s previous trend of exceeding financial expectations by more than $2 billion, a pattern that was consistent prior to the company’s shift to its new Blackwell architecture.
Kumar highlighted the robust demand for Blackwell, as indicated by capital expenditure increases from major hyperscale companies. Furthermore, the analyst suggested that NVIDIA’s supply situation has improved since the initial launch phases in October and January. The firm also expressed confidence that NVIDIA’s products would remain in high demand throughout the calendar year 2025, predicting a rising frequency of significant financial beats as the year advances. According to InvestingPro, NVIDIA boasts a perfect Piotroski Score of 9 and maintains industry-leading gross profit margins of 76%, suggesting strong operational efficiency. Discover 18 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
In light of these expectations, Piper Sandler has adjusted its financial forecasts for NVIDIA to better align with the broader market consensus, while also anticipating potential upside from the strong demand signals emanating from NVIDIA’s key customers. With analysts forecasting 112% revenue growth for the fiscal year and the company trading at a P/E ratio of 52, investors can access detailed valuation metrics and Fair Value analysis through InvestingPro’s comprehensive research reports. The analyst concluded by reiterating NVIDIA as their top large-cap stock pick, signaling continued optimism for the company’s performance.
In other recent news, NVIDIA has been the focus of several analyst reports and legal developments. Cantor Fitzgerald reiterated its Overweight rating on NVIDIA, maintaining a $200 price target, noting the company’s consistent pattern of surpassing revenue guidance by approximately $2 billion. Evercore ISI also maintained its Outperform rating with a $190 target, expressing confidence in NVIDIA’s position in the AI sector despite some market concerns. Meanwhile, Morgan Stanley (NYSE:MS) reaffirmed its Overweight rating with a $152 target, highlighting ongoing market expectations and potential future momentum once export control challenges are addressed.
Rosenblatt Securities kept its Buy rating on NVIDIA with a $220 target, anticipating a favorable earnings report and noting the expected increase in demand for NVIDIA’s Blackwell product line. In legal news, NVIDIA has filed a lawsuit against EU regulators over scrutiny of its acquisition of AI startup Run:ai, arguing that the regulators overstepped their authority. Despite this legal challenge, the EU had already approved the Run:ai transaction in December. Investors are keenly awaiting NVIDIA’s upcoming earnings report and any updates on the Blackwell product launch, which analysts suggest could significantly impact the company’s future growth trajectory.
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