Trump announces 100% chip tariff as Apple ups U.S. investment
On Thursday, Stifel analysts maintained their Buy rating and $180.00 price target for NVIDIA stock (NASDAQ:NVDA), following the company’s financial results for the first quarter. The firm’s assessment highlighted NVIDIA’s performance, which surpassed first-quarter expectations despite a $2.5 billion revenue shortfall related to the unfulfilled H20 product line. NVIDIA’s adjusted gross margin, excluding inventory and purchase obligation charges tied to H20, reached 71.3%, slightly above the guidance provided by management. According to InvestingPro data, NVIDIA has achieved impressive revenue growth of 114.2% over the last twelve months, with a perfect Piotroski Score of 9, indicating exceptional financial strength.
Stifel’s commentary pointed out that NVIDIA’s second-quarter revenue guidance of $4.5 billion was more optimistic than anticipated, noting that it could have been $8 billion higher without the export restrictions on the H20 product. Analysts at Stifel believe that, when comparing similar items, non-China Data Center revenue is poised to grow approximately 30% sequentially as NVIDIA advances with the GB200 product ramp-up. The company’s strong financial position is reflected in its current ratio of 4.44 and moderate debt levels, as reported by InvestingPro.
Furthermore, NVIDIA began sampling its GB300 systems in early May and is expected to shift to production shipments later in the quarter. The smooth transition to GB300 is anticipated, and NVIDIA has maintained its fiscal year-end outlook, expecting a recovery to mid-70s gross margins.
The analysis by Stifel also projects a strong second half for the fiscal year 2026, driven by NVIDIA’s positioning within the rapidly evolving AI landscape. The firm’s reiterated Buy rating reflects confidence in NVIDIA’s continued growth and adaptation in the sector.
In other recent news, NVIDIA Corporation reported strong financial results, with April-quarter revenues of $44 billion, surpassing consensus estimates despite challenges from trade restrictions in China. The company also provided a July-quarter revenue guidance of $45 billion, slightly below consensus but exceeding some analysts’ forecasts. Analysts from Evercore ISI, JPMorgan, Citi, Deutsche Bank (ETR:DBKGn), and Bernstein have weighed in on NVIDIA’s performance, each maintaining positive or neutral ratings with varied price targets ranging from $145 to $190. NVIDIA’s Blackwell product line has been a significant contributor, with revenues of $24 billion, and its data center business saw a remarkable 73% year-over-year growth.
Despite facing $4.5 billion in inventory write-downs, NVIDIA’s gross margins were reported at 61%, with future margins expected to improve. Analysts from Citi and JPMorgan noted the strong demand for NVIDIA’s products, particularly in AI and data center segments, and anticipate continued growth. Citi raised its price target to $180, highlighting NVIDIA’s resilience amidst the China H20 ban and its potential to reach new highs. Deutsche Bank adjusted its price target to $145, acknowledging NVIDIA’s robust performance despite revenue and margin headwinds.
Bernstein maintained an Outperform rating with a $185 target, commending NVIDIA’s transparent management approach amidst regulatory challenges in China. The anticipated success of NVIDIA’s next-generation Blackwell GPUs and easing supply constraints contribute to a positive outlook. Overall, analysts recognize NVIDIA’s competitive edge and strategic positioning in the market, with expectations of strong growth driven by increasing demand for computing power.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.