On Tuesday, Truist Securities updated its stance on shares of NVIDIA Corporation (NASDAQ:NVDA), increasing the price target to $167 from the previous $148 while maintaining a Buy rating on the stock. The firm anticipates NVIDIA to outperform consensus expectations in its third-quarter results for October and provide strong guidance for the fourth quarter ending in January.
NVIDIA is expected to address the technical issues encountered with the GB200 NVL72 configuration and to express confidence in its prospects for the calendar year 2025, citing a very robust backlog. The company is also likely to highlight new growth avenues beyond Language Learning Models (LLMs), focusing on data processing and physical AI.
Truist Securities revised its earnings per share (EPS) estimates for NVIDIA for the calendar year 2025, raising them to $4.18 from the former $3.69. This adjustment reflects heightened growth expectations in the Datacenter end market. The new price target of $167 is based on a consistent 40x price-to-earnings (P/E) ratio, which includes a 5x discount compared to high-growth semiconductor peers.
The analyst's statement underscores the firm's confidence in NVIDIA's upcoming earnings report, which is scheduled to be released on Wednesday, November 20, 2024. The raised price target and maintained Buy rating suggest a positive outlook for NVIDIA's financial performance and growth trajectory.
In other recent news, NVIDIA has been making significant strides in the financial and tech world. Stifel recently increased NVIDIA's price target to $180, maintaining a Buy rating due to positive supply chain indicators and the potential for NVIDIA to outperform expectations. Analysts from the firm anticipate a beat-and-raise scenario for NVIDIA's upcoming third-quarter fiscal year 2025 results.
In addition, KeyBanc maintained its Overweight rating on NVIDIA, highlighting the company's robust demand for its Hopper products. Despite potential near-term supply issues, the firm remains positive about NVIDIA's long-term prospects.
NVIDIA also introduced a blueprint for real-time computer-aided engineering (CAE (NYSE:CAE)) digital twins, which is expected to significantly reduce development costs and energy usage. Furthermore, the company launched the world's first combined artificial intelligence and 5G telecommunications network, known as an artificial intelligence radio access network (AI-RAN), in collaboration with SoftBank (TYO:9984) Corp.
Analyst firms such as Bank of America, Rosenblatt Securities, and Morgan Stanley (NYSE:MS) reiterated positive stances on NVIDIA's shares. These firms highlighted NVIDIA's solid positioning and the potential of the Blackwell product line.
Analysts project NVIDIA's FQ3 and FQ4 sales to reach $33.2 billion and $37 billion, respectively. HSBC anticipates NVIDIA's third-quarter sales to surpass both management's guidance and consensus estimates, reaching $35.3 billion. These are the recent developments surrounding NVIDIA.
InvestingPro Insights
NVIDIA's robust financial performance aligns with Truist Securities' optimistic outlook. According to InvestingPro data, NVIDIA boasts an impressive revenue growth of 194.69% over the last twelve months as of Q2 2025, with quarterly revenue growth of 122.4% in Q2 2025. This exceptional growth supports Truist's expectation of NVIDIA outperforming consensus estimates.
InvestingPro Tips highlight NVIDIA's strong market position, noting it as a "Prominent player in the Semiconductors & Semiconductor Equipment industry." The company's financial health is further underscored by its "Impressive gross profit margins," which stand at 75.98% for the last twelve months as of Q2 2025.
While Truist Securities raised its price target to $167, InvestingPro data shows the average analyst fair value target at $165, suggesting potential upside from the current price of $140.15. Investors seeking more comprehensive analysis can access 21 additional InvestingPro Tips for NVIDIA, offering deeper insights into the company's financial health and market position.
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