JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, UBS reiterated its Buy rating on NVIDIA (NASDAQ:NVDA) shares, maintaining a $175.00 price target. The firm’s analyst highlighted a shift in the debate surrounding NVIDIA, noting improved gross margin commentary and bullish updates on product shipments. The analysis followed recent announcements at Computex and addressed investor concerns about supply chain inventory levels. According to InvestingPro data, NVIDIA maintains an impressive 75% gross profit margin and boasts a perfect Piotroski Score of 9, indicating excellent financial strength.
According to the UBS analyst, NVIDIA’s recent results and guidance met expectations, and the company’s commentary on gross margins was more positive than anticipated. The analyst also pointed out that NVIDIA’s progress on its GB200 rack shipments and developments with the GB300 were more bullish than the feedback received at Computex. Such progress was seen as a counter to concerns regarding supply chain inventory. With revenue growth of 114% in the last twelve months and a market capitalization of $3.42 trillion, NVIDIA continues to demonstrate strong market leadership. InvestingPro analysis reveals 18 additional key metrics and insights available for subscribers.
The report also touched on the potential impact of the China ban, suggesting that without it, NVIDIA’s second fiscal quarter revenue could have been approximately $5-6 billion above Street estimates. This was presented as evidence of strengthening underlying fundamentals. Despite a flat quarter-over-quarter supply measurement, which was affected by a writedown, the adjusted pro-forma basis indicated growth in supply.
Looking ahead, the analyst suggested a constructive setup for NVIDIA, anticipating that the Trump administration might allow NVIDIA to ship a new SKU to China, which could potentially add back around $2-3 billion per quarter. Additionally, the analyst pointed to positive capex trends among hyperscalers and the rapid global diffusion of AI technology. Large-scale AI projects, such as Humain in Saudi Arabia, Stargate, and the 5GW AI campus in the UAE, were mentioned as significant opportunities for NVIDIA, potentially worth tens of billions of dollars. InvestingPro’s comprehensive analysis shows the company maintains a strong financial health score of 3.75 (GREAT), with robust cash flows and moderate debt levels, positioning it well for these opportunities.
In conclusion, UBS increased its estimates for NVIDIA’s calendar years 2025 and 2026, remaining focused on a projected earnings per share (EPS) of around $6 for the next year. This EPS forecast underpins UBS’s $175 price target and Buy rating for NVIDIA stock. The company currently trades at a P/E ratio of 47.27, reflecting the market’s strong growth expectations.
In other recent news, NVIDIA Corporation has reported several significant developments. Cantor Fitzgerald reaffirmed its positive stance on NVIDIA, maintaining an Overweight rating and a $200 price target, highlighting the company’s encouraging revenue projections for the July quarter, which are expected to exceed market expectations. Meanwhile, Benchmark analysts maintained their Buy rating and $190 price target, noting NVIDIA’s strong financial results, which surpassed expectations after adjustments for a one-time charge related to China. Loop Capital also maintained a Buy rating with a $175 price target, despite NVIDIA missing out on approximately $2.5 billion in revenue due to the H20 ban on shipments to China.
Wolfe Research reiterated an Outperform rating with a $170 price target, emphasizing NVIDIA’s successful addressal of key investor concerns and the strong performance of rack shipments. Baird’s analysts maintained an Outperform rating with a $195 price target, projecting a significant revenue increase in NVIDIA’s data center segment. The analysts from these firms express confidence in NVIDIA’s ability to navigate challenges and capitalize on growth opportunities, particularly in AI-related technologies and the Chinese market. NVIDIA’s management remains optimistic about the company’s future, with expectations of significant earnings growth and market expansion.
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