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On Thursday, Truist Securities updated its outlook on NVIDIA Corporation (NASDAQ:NVDA), increasing the price target from $205.00 to $210.00 while sustaining a Buy rating on the stock. The adjustment comes in the wake of NVIDIA’s recent financial performance, which generated impressive revenue of $130.5 billion with 114.2% growth year-over-year. Despite facing export control challenges, the company presented stronger than anticipated results for the first quarter. According to InvestingPro data, NVIDIA maintains an excellent financial health score and a perfect Piotroski Score of 9, indicating strong operational efficiency.
According to Truist Securities, NVIDIA managed to surpass a significant obstacle. If it weren’t for the export controls, NVIDIA’s results for the first quarter and the guidance for the second quarter would have exceeded the consensus estimates with a considerable margin. However, due to the export restrictions, the first-quarter results showed a modest beat and the forecast for the second quarter was slightly below the consensus. InvestingPro subscribers can access 18 additional key insights about NVIDIA’s performance and market position through exclusive ProTips.
The analyst noted that the demand for NVIDIA’s products from cloud service providers, enterprises, and government entities continues to grow. Although the $50 billion Total (EPA:TTEF) Addressable Market (TAM) in China is currently on hold, Truist Securities has increased its estimates for NVIDIA’s margins. Consequently, the forecast for calendar year 2026 earnings per share (EPS) has been raised to $5.99 from the previous $5.87.
The new price target of $210.00 is based on a 35x multiple of the projected EPS, which represents a 10x discount compared to NVIDIA’s high-growth semiconductor peers. This valuation reflects the analyst’s confidence in NVIDIA’s market position and future earnings potential, despite the current regulatory environment affecting its operations.
In other recent news, NVIDIA Corporation reported strong fiscal Q1 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.96, exceeding the forecast of $0.93, and achieved revenue of $44.1 billion against a projected $43.31 billion. Analysts at Stifel and KeyBanc maintained positive ratings on NVIDIA, with Stifel reiterating a Buy rating and KeyBanc maintaining an Overweight rating, highlighting the company’s robust financial performance and future growth prospects. Despite export restrictions impacting NVIDIA’s H20 product, the company’s second-quarter revenue guidance of $4.5 billion was well-received by analysts. Raymond (NSE:RYMD) James also raised its price target for NVIDIA to $165, maintaining a Strong Buy rating, citing the company’s impressive performance amidst challenges. NVIDIA’s data center revenue saw a significant year-on-year increase of 73%, attributed to the successful ramp-up of Blackwell products. The company is also making strides in the gaming sector, with a record revenue of $3.8 billion, and has begun sampling its GB300 systems, with plans for production shipments later in the quarter.
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