Bullish indicating open at $55-$60, IPO prices at $37
On Thursday, Wolfe Research reaffirmed its optimistic stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining an Outperform rating and a price target of $180.00. The research firm’s analysis followed NVIDIA’s recent financial report, which revealed a slight outperformance in results and a marginal uptick in guidance. These figures aligned with Wolfe Research’s predictions prior to the earnings release. According to InvestingPro data, NVIDIA has demonstrated remarkable financial strength with revenue growth of 152% and industry-leading gross margins of 76%.
The modest nature of NVIDIA’s earnings beat marked a departure from the substantial surges investors had grown to expect. However, the market’s reaction indicated that expectations had already been tempered, likely due to Wolfe Research’s early December checks and subsequent supply chain insights from various sources. InvestingPro analysis reveals that NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial health. Discover 18 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
Wolfe Research highlighted the absence of one-time factors in NVIDIA’s earnings, which suggested a sustainable performance level. Speculation around a potential increase in revenue due to accelerated purchases in China was dispelled, as the results showed this was not the case. NVIDIA’s management anticipates that China will continue to contribute a consistent low-teens percentage to the company’s revenue, noting a quarter-over-quarter decline in revenue from Singapore.
The reaffirmation of the Outperform rating and the $180.00 price target by Wolfe Research indicates confidence in NVIDIA’s market position and future performance. The firm’s commentary underscores the tech company’s steady financial outlook without reliance on irregular revenue boosts.
In other recent news, NVIDIA Corporation has reported significant earnings results, with its Data Center segment revenue experiencing a 16% increase quarter-over-quarter and a 93% rise year-over-year. Despite a slight decline in Networking revenue, NVIDIA’s overall financial performance remains strong, with fourth-quarter revenue reaching approximately $11 billion. In light of these results, several analyst firms have adjusted their outlooks on NVIDIA. Bernstein raised its price target to $185, citing NVIDIA’s successful navigation of supply chain challenges and the full production of its Blackwell product line. Truist Securities also increased its target slightly to $205, highlighting the positive trajectory of NVIDIA’s operational developments and continued innovation. However, Summit Insights downgraded NVIDIA from Buy to Hold, pointing to concerns about inflated expectations and potential challenges in the PC Client Microprocessor Unit market. Meanwhile, Morgan Stanley (NYSE:MS) lifted its price target to $162, noting NVIDIA’s impressive growth in a transitional quarter and the strong demand for its Blackwell products. Stifel maintained a Buy rating with a $180 target, expressing optimism about the company’s future prospects and the anticipated growth in its Blackwell systems.
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