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Investing.com - Stifel has reiterated its Buy rating on Nvidia (NASDAQ:NVDA) stock with a price target of $212.00, following the company’s latest earnings report. According to InvestingPro data, Nvidia currently trades at a P/E ratio of 57.8x and maintains an EXCELLENT financial health score, though analysis suggests the stock is trading above its Fair Value.
The chipmaker reported results that were modestly better than expected, with the upside driven by its Gaming segment, while Data Center (DC) revenue came in lower than anticipated despite growing 56% year-over-year and 5% quarter-over-quarter. The company’s impressive 86% year-over-year revenue growth and 70% gross profit margin demonstrate its strong market position. InvestingPro subscribers have access to over 20 additional key insights about Nvidia’s financial performance and valuation metrics.
Nvidia provided fiscal third-quarter revenue guidance of $54 billion, exceeding consensus estimates, with the sequential growth primarily coming from the Data Center segment. The company noted this guidance does not include potential China/H20 revenue, which management suggested could range from $2 billion to $5 billion if certain geopolitical issues are resolved.
The company’s networking revenue appears to have reached an inflection point, increasing 46% quarter-over-quarter and 98% year-over-year. Gross margins performed better than expected, with further increases forecast for the fiscal third quarter and reiterated expectations for mid-70s gross margin exiting fiscal 2026.
Stifel maintains its longer-term thesis that Agentic AI/reasoning requires significant increases in computing power, with visibility into AI infrastructure demand extending well into 2025, positioning Nvidia to benefit from these trends.
In other recent news, Nvidia reported better-than-expected results for its fiscal second quarter, with third-quarter revenue guidance aligning with analyst expectations. Notably, the guidance excludes any revenue from H20 chips in China due to ongoing geopolitical challenges. Rosenblatt has raised its price target for Nvidia to $215, maintaining a Buy rating, citing the ramp-up of Nvidia’s Grace Blackwell-based racks. Needham also reiterated its Buy rating with a $200 price target, despite challenges in the Chinese market. Wolfe Research increased its price target to $230, noting Nvidia’s strong quarterly performance and ongoing exclusion of China revenue from its outlook. William Blair has maintained an Outperform rating, highlighting the company’s modest beat-and-raise quarter. BofA Securities has raised its price target to $235, emphasizing Nvidia’s dominance in the AI infrastructure market and its industry-leading free cash flow margins. These developments reflect Nvidia’s strong position in the market, despite external challenges.
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