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On Thursday, Stifel analysts reaffirmed their Buy rating on NVIDIA Corporation (NASDAQ:NVDA) shares, maintaining a price target of $180.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong analyst consensus rating of 1.34 (where 1 is Strong Buy). The firm’s analysts expressed a positive view of NVIDIA’s financial results and future prospects, particularly highlighting the company’s revenue performance in its fourth fiscal quarter, which reached approximately $11 billion. As a prominent player in the Semiconductors industry, NVIDIA has achieved impressive revenue growth of 152% year-over-year.
NVIDIA’s Data Center (DC) segment revenue showed considerable growth, with a 16% quarter-over-quarter increase and a 93% rise year-over-year. The DC Compute revenue specifically grew by 18% quarter-over-quarter and doubled on a year-over-year basis. This strong performance is reflected in the company’s exceptional gross profit margin of 75.86% and perfect Piotroski Score of 9, according to InvestingPro data. However, the Networking revenue experienced a slight decline, falling by 3% quarter-over-quarter and approximately 8% year-over-year.
The analysts at Stifel noted that the decline in the Networking segment, which has occurred for two consecutive quarters, is expected to be a temporary setback as the ramp-up of Blackwell systems progresses. They emphasized the significance of the Blackwell ramp, especially in light of the strong growth anticipated in the first fiscal quarter following its solid performance in the fourth quarter.
Furthermore, the analysts are optimistic about the upcoming transition to the B300/GB300 systems, which they believe could lead to less challenging production and the potential for accelerated revenue growth in the second half of 2026. Management’s comments regarding the adoption of NVIDIA’s technology by a diverse range of customers and the deployment of large computing clusters, some exceeding 100,000 units, were also highlighted as noteworthy, particularly as they address recent concerns related to DeepSeek technology. For deeper insights into NVIDIA’s financial health, growth prospects, and 18 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, NVIDIA has reported significant financial achievements and future projections that have caught the attention of several major analyst firms. NVIDIA’s fiscal fourth-quarter sales soared by 78% year-over-year to $39.3 billion, surpassing consensus estimates by 3%, while its guidance for the first fiscal quarter is set at $43 billion, reflecting a 66% increase year-over-year. The Blackwell product line notably contributed nearly $11 billion in sales, exceeding expectations and reinforcing confidence in its progress. Analyst firms such as BofA Securities and Morgan Stanley (NYSE:MS) have responded positively, with BofA raising NVIDIA’s stock price target to $200 due to its strong AI market position, and Morgan Stanley lifting their target to $162, citing the company’s growth and market prospects.
Piper Sandler and Evercore ISI also maintained positive ratings, with Piper Sandler reaffirming a $175 price target and Evercore ISI setting it at $190, both highlighting NVIDIA’s strong performance and demand for its Blackwell products. Despite some concerns about gross margin pressures, largely due to production costs associated with Blackwell, analysts project a rebound in margins towards the end of the year. NVIDIA’s strategic direction and innovations in accelerated computing are central to its market dominance, with TD Cowen maintaining a Buy rating and a $175 price target, reflecting confidence in the company’s long-term growth. These developments underscore NVIDIA’s resilience and innovation in a competitive market landscape.
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