Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Thursday, Raymond (NSE:RYMD) James analyst Srini Pajjuri confirmed a positive outlook on NVIDIA (NASDAQ:NVDA) shares, maintaining an Outperform rating with a $170.00 price target. With a perfect Piotroski Score of 9 according to InvestingPro data, NVIDIA’s financial health is rated as "Great." Pajjuri’s analysis followed NVIDIA’s fourth-quarter results, noting they aligned with expectations, and the first-quarter forecast was favorable. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. A key highlight was the Blackwell product’s performance, anticipated to surpass Hopper revenue in the first quarter, indicating past delays have been resolved.
Growth for NVIDIA was primarily driven by U.S. Hyperscalers, while the proportion of sales from China diminished to 14%, a change likely to address concerns related to export restrictions. The company’s impressive 152.44% revenue growth and robust gross profit margins of 75.86% reflect this strong momentum. NVIDIA is experiencing a surge in inferencing demand, as advanced reasoning models like DeepSeek require substantially more computing power, up to a hundredfold according to the company’s management.
While NVIDIA’s management did not provide specific comments on their 2026 vision, they expressed confidence in the company’s medium and long-term prospects. This optimism is supported by NVIDIA’s involvement in emerging technologies such as Agentic AI and robotics, referred to as Physical AI.
The outlook for the first-quarter gross margin is slightly lower, yet management anticipates it returning to mid-70% levels later in the year. The networking segment saw a quarter-over-quarter decline for a second consecutive period, likely due to timing issues. Pajjuri concluded that the overall results and outlook for NVIDIA are solid and expects market sentiment to improve as the company approaches the GTC conference. Raymond James reiterated a Strong Buy recommendation for NVIDIA stock, now valued at over $3.2 trillion in market capitalization. For deeper insights into NVIDIA’s valuation metrics and 18 additional ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, NVIDIA Corporation reported earnings for the January quarter, with its Blackwell product generating $11 billion in revenue, exceeding expectations across several analyst firms. Evercore ISI noted that NVIDIA’s earnings per share surpassed forecasts by 5%, while Citi highlighted that NVIDIA’s total sales reached $39 billion and $43 billion for the January and April quarters, respectively, slightly outperforming their projections. Despite a dip in gross margins, NVIDIA expects them to rebound to the mid-70% range by the end of the year.
Analysts remain optimistic about NVIDIA’s future, with Evercore ISI maintaining an Outperform rating and a $190 price target, and UBS reiterating a Buy rating with a $185 target. Citi also upheld its Buy rating with a $163 target, despite acknowledging potential short-term challenges such as trade restrictions with China and semiconductor tariffs. Wolfe Research reaffirmed its Outperform rating with a $180 target, emphasizing the sustainability of NVIDIA’s performance without reliance on one-time factors.
The demand for NVIDIA’s Blackwell, driven by AI model inference and complex reasoning models, continues to be robust, with the company projecting strong growth into 2025. UBS pointed out that Blackwell’s rapid development is ahead of schedule, signaling potential growth for NVIDIA. The company’s commitment to controlling operating expenses this year is seen as a positive indicator of its confidence in continued expansion.
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