Piper Sandler reiterates Overweight rating on Nvidia stock with $225 target

Published 28/08/2025, 05:26
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Investing.com - Piper Sandler has reiterated its Overweight rating and $225 price target on Nvidia (NASDAQ:NVDA), currently trading near its 52-week high, following the company’s July quarter earnings report and October quarter guidance. According to InvestingPro data, the company maintains an EXCELLENT financial health score, supported by robust growth metrics.

The chipmaker’s October quarter revenue guidance of $54 billion exceeded market expectations, with Piper Sandler noting this guidance does not include any revenue from Nvidia’s H20 chips, which could represent potential upside. Nvidia indicated it could generate between $2 billion and $5 billion in China revenue during the current quarter. The company has demonstrated impressive revenue growth of 86% in the last twelve months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

Nvidia’s networking business delivered 46% sequential growth, which Piper Sandler highlighted as a positive surprise in the report. The company’s GB300 system also entered full production mode late in the reported quarter, representing another milestone.

On profitability, Nvidia expects to achieve gross margins in the mid-70s percentage range by year-end, according to the research note. This projection suggests continued strength in the company’s financial performance.

Piper Sandler views Nvidia as the leader in full-scale AI infrastructure providers, citing exceptional total cost of ownership and return on investment for customers. The firm has revised its financial projections upward for Nvidia based on these results.

In other recent news, NVIDIA Corporation reported its second-quarter 2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share (EPS) of $1.04, surpassing the forecasted $1.01. Revenue for the quarter reached $46.7 billion, outpacing the anticipated $46.1 billion. These results reflect a strong performance by NVIDIA, contributing to an optimistic outlook among investors. The earnings beat and positive future guidance were notable highlights from the company’s recent announcements. There were no reports of mergers or acquisitions involving NVIDIA at this time. Additionally, there were no analyst upgrades or downgrades reported in relation to NVIDIA’s stock. The company’s earnings performance and revenue results remain the focal points for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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