Truist maintains NVIDIA stock Buy rating, $204 target ahead of earnings

Tuesday, NVIDIA (NASDAQ:NVDA) shares maintained a positive outlook as Truist Securities reiterated a Buy rating with a $204.00 price target. With a market capitalization of $3.2 trillion and trading at a P/E ratio of 51.92x, InvestingPro analysis indicates NVIDIA is currently fairly valued. Analysts at Truist Securities voiced confidence in NVIDIA’s leadership position in the Artificial Intelligence (AI) sector, anticipating that the company’s upcoming earnings report on Wednesday, February 26, will reveal results surpassing consensus expectations for the fourth quarter (January) and provide guidance for the first quarter (April) that aligns with current consensus estimates.

The firm anticipates that NVIDIA will announce an upside in its fourth-quarter (January) results and first-quarter (April) guidance, with an expected consolidation of product offerings around the NVL72 configuration. Supporting this optimistic outlook, InvestingPro data shows NVIDIA maintains excellent financial health with a perfect Piotroski Score of 9 and impressive revenue growth of 152% over the last twelve months. Truist Securities also predicts that NVIDIA will express a strong outlook for the calendar year 2025, backed by a robust backlog, and will focus on identifying the next growth drivers beyond Large Language Models (LLMs), such as data processing and physical AI, which encompasses robotics.

The analysts project NVIDIA’s earnings per share (EPS) for the calendar year 2026 to be $5.84. The $204 price target is based on a 35x price-to-earnings (P/E) ratio, which includes a 15x discount compared to other high-growth semiconductor companies. According to Truist, capital expenditure data points suggest a favorable medium-term outlook for NVIDIA’s backlog. InvestingPro subscribers have access to 18 additional exclusive insights and a comprehensive Pro Research Report that provides deep-dive analysis of NVIDIA’s financials, including its industry-leading gross profit margin of 75.86%.

Truist Securities also expects NVIDIA’s management to discuss the consolidation of Blackwell SKUs around the NVL72 system and to elaborate on emerging AI models and techniques, including data processing and physical AI, during the earnings call. This discussion is anticipated to serve as a positive catalyst for NVIDIA stock, with the next potential uplift being the GPU Technology Conference (GTC) scheduled for March.

In other recent news, several firms have shared their perspectives on NVIDIA’s financial outlook and strategic moves. Piper Sandler maintains an Overweight rating with a $175 price target, projecting NVIDIA will exceed revenue estimates for the January quarter by approximately $1.8 billion, driven by strong demand for its Blackwell architecture. Similarly, Cantor Fitzgerald reiterated its Overweight rating with a $200 price target, emphasizing NVIDIA’s consistent pattern of surpassing revenue guidance and anticipating continued outperformance, particularly with the upcoming Blackwell launch. Morgan Stanley (NYSE:MS) also keeps an Overweight rating with a $152 target, noting concerns about export controls but remaining optimistic about NVIDIA’s performance in the second half of the year. Evercore ISI holds an Outperform rating with a $190 target, suggesting that despite market concerns, NVIDIA’s valuation and position in the AI sector make it attractive.

In legal matters, NVIDIA has initiated a lawsuit against EU regulators over their decision to review its acquisition of AI startup Run:ai, alleging overreach in their authority. This lawsuit references a prior European court ruling that limits the Commission’s power to examine smaller deals. Although the lawsuit will not impact the Run:ai transaction, a favorable ruling for NVIDIA could influence future regulatory actions. These developments highlight NVIDIA’s ongoing strategic and financial maneuvers as it continues to navigate market dynamics and regulatory landscapes.

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