On Thursday, Truist Securities adjusted its financial outlook on NVIDIA Corporation (NASDAQ:NVDA), increasing the price target to $148 from the previous $145 while sustaining a Buy rating on the shares.
The adjustment follows NVIDIA's recent quarterly earnings call where the company reported a hit to its gross profit margin (GPM) due to changes in Blackwell's design, which may have also impacted revenue growth potential.
The firm noted that despite the near-term challenges, NVIDIA surpassed revenue and earnings per share (EPS) expectations for the quarter and provided a positive outlook. The analyst from Truist Securities emphasized that these results, along with management's commentary, underscore NVIDIA's continued dominance in the AI sector.
Looking ahead, the analyst projects NVIDIA's earnings per share in the calendar year 2025 to rise to $3.69, up from the previous estimate of $3.61. This earnings forecast is a basis for the new price target, which is set at 40 times the anticipated EPS.
This valuation represents a 5x discount to the company's high-growth semiconductor peers, suggesting that the market may be undervaluing NVIDIA's growth potential.
The Truist Securities analyst concluded by encouraging investors to see beyond the immediate concerns and to focus on NVIDIA's robust performance and strong position in artificial intelligence, which are expected to drive the company's growth moving forward.
In other recent news, NVIDIA Corporation has been the subject of various analyst firms' attention following its strong financial performance. Rosenblatt Securities maintained a Buy rating with a $200 target, citing the company's success in its Hopper generative AI and networking sectors.
NVIDIA reported record-breaking revenue of $30 billion, driven by robust demand for its Hopper and GPU computing platforms. The company anticipates a third-quarter revenue of $32.5 billion, fueled by expected growth in its Hopper architecture and Blackwell products.
NVIDIA has also announced a $50 billion share repurchase authorization, reflecting confidence in its financial health and future prospects.
Despite the initial costs associated with the ramp-up of its new Blackwell architecture, the company's revenue trajectory is expected to remain strong.
NVIDIA's Blackwell roadmap is set to advance as planned, with expectations set for the calendar year 2026. These are the recent developments at NVIDIA.
InvestingPro Insights
In light of Truist Securities' recent price target adjustment for NVIDIA Corporation (NASDAQ:NVDA), InvestingPro data and tips offer additional insights into the company's financial health and market performance. NVIDIA currently boasts a high market capitalization of $3.09 trillion, indicating its significant presence in the market. The company's P/E ratio stands at a lofty 72.84, reflecting high investor expectations for future earnings growth. Furthermore, NVIDIA has shown extraordinary revenue growth over the last twelve months as of Q1 2025, with an increase of 208.27%, which may support the analyst's positive outlook on the company's growth potential.
InvestingPro Tips highlight NVIDIA's perfect Piotroski Score of 9, suggesting that the company is financially healthy and may be less of a risk compared to other investments. Additionally, analysts anticipate sales growth in the current year, aligning with the revenue growth metrics and supporting the notion that NVIDIA is poised for continued success. For investors looking for more detailed analysis, there are over 19 additional InvestingPro Tips available, which can provide a deeper dive into NVIDIA's performance and potential investment opportunities.
These insights underscore NVIDIA's strong financial position and growth prospects, complementing the analysis provided by Truist Securities. Investors seeking to capitalize on NVIDIA's dominance in the AI sector may find these additional data points and tips from InvestingPro to be valuable in making informed investment decisions.
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