Gold bars to be exempt from tariffs, White House clarifies
On Friday, UBS analyst Timothy Arcuri maintained a Buy rating on NVIDIA (NASDAQ:NVDA) with a steady price target of $185.00. The semiconductor giant, currently valued at $2.66 trillion, maintains a strong Buy consensus among analysts with targets ranging from $115 to $220. According to InvestingPro, NVIDIA boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. Arcuri's analysis followed the release of export data by the Taiwan Ministry of Finance for March, which included figures for Automatic Data Processing (NASDAQ:ADP) equipment. The data showed that ADP exports, excluding laptops, reached $12.03 billion, marking a 20.6% month-over-month increase from February's $9.97 billion. This growth, while slightly below the typical mid-20s month-over-month increase expected for March—historically the strongest month of the year—still represents the fourth consecutive month of at least mid-teens growth.
The robust performance in February, which saw a 14% month-over-month increase compared to the usual 15% decline for the period, set a high baseline for the March figures. Looking ahead, if April maintains a "normal" 36% share of total first-quarter exports, this could imply an approximate $34 billion in exports, a significant 58% quarter-over-quarter increase. However, the extent to which these numbers reflect genuine market strength versus tariff-related adjustments remains uncertain.
UBS projects NVIDIA's data center revenue to climb by 18% quarter-over-quarter to $42 billion in the April quarter. This projection aligns with NVIDIA's impressive 114.2% revenue growth over the last twelve months, with the company maintaining a robust gross profit margin of 75%. While the recent data appears to bode well for NVIDIA, Arcuri advises caution, noting that such data has not consistently predicted performance in recent quarters, with discrepancies sometimes reaching the mid-teens.
Additionally, Taiwan Semiconductor Manufacturing Company (TSMC) reported a 10% month-over-month increase in March sales, surpassing typical seasonal trends. This positive report from TSMC could be seen as an encouraging sign for the semiconductor industry, which NVIDIA is a part of. Nevertheless, the caution expressed by UBS regarding the predictive value of the recent export data suggests a complex landscape for NVIDIA's stock performance in the near term. Investors looking for deeper insights can access NVIDIA's comprehensive Pro Research Report, along with 20+ exclusive ProTips and detailed financial metrics through InvestingPro, helping navigate this dynamic market environment.
In other recent news, Tesla (NASDAQ:TSLA) and Nvidia have been at the forefront of developments among the Magnificent Seven stocks. Tesla reported a decline of 2.0% in its shares following China's decision to increase tariffs on U.S. goods, impacting the profitability of companies operating in China. Meanwhile, Nvidia's shares saw a premarket decrease of 2.7% due to a temporary pause after a significant market rally. Despite this, Nvidia remains a focal point for analysts, with TD Cowen adjusting its price target to $140 while maintaining a Buy rating. KeyBanc Capital Markets also maintained an Overweight rating on Nvidia, setting a price target of $190, despite challenges with its semiconductor partners. Both firms underscore Nvidia's technological leadership and long-term prospects, highlighting the importance of its Blackwell technology in upcoming quarters. Tesla also experienced a 2.7% premarket gain as part of a rebound among the Magnificent Seven stocks. Additionally, Apple (NASDAQ:AAPL)'s market capitalization fell below Microsoft (NASDAQ:MSFT)'s, making Microsoft the world's largest listed company.
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