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On Thursday, Stifel analysts reiterated their Buy rating on NVIDIA shares, maintaining a price target of $180.00. NVIDIA (NASDAQ:NVDA), which boasts an "Excellent" Financial Health Score according to InvestingPro, reported first-quarter earnings that surpassed expectations, despite a significant shortfall in revenue due to export restrictions on its H20 product. The company’s adjusted gross margin, which excludes inventory and purchase obligation charges related to H20, reached 71.3%, marginally exceeding the guidance provided by management. This aligns with NVIDIA’s impressive trailing twelve-month gross profit margin of 75%.
NVIDIA’s second-quarter revenue guidance of $4.5 billion was received positively by analysts, who had anticipated a lower figure. With a perfect Piotroski Score of 9 and remarkable revenue growth of 114.2% over the last twelve months, NVIDIA continues to demonstrate strong financial performance. Stifel noted that if not for the H20 export restriction, the forecast could have been $8 billion higher. Analysts at Stifel highlighted that, when comparing similar metrics, non-China Data Center (DC) revenue is expected to grow by approximately 30% sequentially as the company progresses with the GB200 product ramp. For deeper insights into NVIDIA’s valuation and growth metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial data and expert recommendations.
The company has also begun sampling its GB300 systems in early May, with plans to transition to production shipments later in the quarter. Stifel expects a smooth transition to the GB300 systems and noted NVIDIA’s confidence in recovering to mid-70s gross margins by the end of the fiscal year.
Stifel’s outlook for NVIDIA remains optimistic, with expectations of a strong second half of fiscal year 2026. The firm believes NVIDIA will continue to benefit from the rapidly evolving artificial intelligence landscape, which should contribute to the company’s performance and justify the maintained Buy rating and price target.
In other recent news, NVIDIA Corporation reported strong fiscal Q1 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company achieved an EPS of $0.96, exceeding the forecast of $0.93, and posted revenue of $44.1 billion against a projected $43.31 billion. KeyBanc Capital Markets maintained an Overweight rating on NVIDIA, with a $190 price target, following the company’s robust financial disclosures and promising second-quarter guidance. Despite the exclusion of approximately $8 billion in revenue from H20 sales due to a China ban, NVIDIA’s adjusted guidance still suggests significant revenue growth.
Raymond (NSE:RYMD) James also expressed confidence in NVIDIA, raising the stock target to $165 while maintaining a Strong Buy rating. The analyst highlighted NVIDIA’s successful ramp-up of Blackwell racks and the positive influence on gross margins. NVIDIA’s data center revenue saw a substantial 73% year-on-year increase, driven by the success of Blackwell products, which accounted for nearly 70% of the compute revenues.
The company’s networking segment experienced a robust recovery, with NVLink and the Spectrum-X Ethernet switch securing new customers like META (NASDAQ:META) and GCP. In the gaming sector, NVIDIA benefited from new product releases and an improved supply chain. Looking ahead, NVIDIA expects Q2 revenue to be around $45 billion, with a focus on expanding its AI infrastructure despite anticipated decreases in China data center revenue due to geopolitical factors.
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