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On Thursday, Truist Securities updated their outlook on NVIDIA Corporation (NASDAQ:NVDA) shares, slightly increasing the price target to $205.00 from the previous $204.00, while reiterating a Buy rating on the stock. The adjustment reflects a positive view on recent operational developments within the company. According to InvestingPro data, NVIDIA currently trades at a P/E ratio of 50.6x and has achieved remarkable revenue growth of 152% in the last twelve months.
According to Truist Securities, there are several key operational updates that investors should not disregard. Firstly, the GB200 NVL72 is now being delivered and set up in volume, which aligns with earlier previews. Secondly, following the DeepSeek initiative, NVIDIA experienced a rise in customer interest and demand. Lastly, commentary on operational expenses suggests a promising outlook for sales growth. This optimism is supported by NVIDIA’s impressive gross profit margin of 75.9% and its perfect Piotroski Score of 9, as reported by InvestingPro.
The analyst at Truist Securities emphasized NVIDIA’s strong position as a leading AI company, attributing its success to a culture of innovation, a well-established ecosystem, and significant investments in software, models, and services. Based on these factors, the firm’s forecast for NVIDIA’s earnings per share (EPS) in the calendar year 2026 has been revised upwards to $5.87 from $5.83.
The new price target is based on a 35 times multiple of the anticipated EPS, which includes a 15 times discount compared to high-growth semiconductor peers. This valuation reflects confidence in NVIDIA’s ongoing performance and potential in the AI sector. The slight increase in the price target, although modest, points to a steady and optimistic outlook for NVIDIA’s financial future.
In other recent news, NVIDIA reported its financial results for the January and April quarters, with sales figures of $39 billion and $43 billion, respectively, slightly exceeding analyst forecasts from Citi. The company’s Blackwell product recorded $11 billion in sales, surpassing expectations from multiple analysts, including Citi and Evercore ISI, indicating a successful ramp-up and strong demand. Despite a dip in gross margins, NVIDIA expects to restore them to mid-70% levels by the end of the year. Analysts from Raymond (NSE:RYMD) James, Evercore ISI, Citi, and UBS all maintain positive ratings on NVIDIA, with price targets ranging from $163 to $190.
Raymond James noted that NVIDIA’s earnings and first-quarter forecast met expectations, emphasizing the performance of the Blackwell product. Evercore ISI highlighted NVIDIA’s earnings per share exceeding expectations and a modest increase in the outlook for the April quarter. UBS pointed out that the Blackwell project is advancing ahead of schedule, exceeding even optimistic forecasts. Citi analysts acknowledged potential short-term challenges, such as new trade restrictions with China, but view NVIDIA’s valuation as attractive for long-term investors.
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