On Thursday, Deutsche Bank updated its stance on NVIDIA Corporation (NASDAQ:NVDA), elevating the stock's price target to $720 from the previous $560 while retaining a Hold rating. The firm acknowledged NVIDIA's consistent financial performance, marking the fourth consecutive quarter of significant revenue surges. This growth, according to the bank, was somewhat expected by the investment community and though less surprising than in previous quarters, it remains notable.
NVIDIA has reportedly experienced a broadening of its customer base, extending beyond cloud service providers (CSPs) to include startups, sovereign entities, and various industry verticals. Deutsche Bank highlighted NVIDIA’s confidence in the robustness and diversity of its demand pipeline, which is anticipated to contribute to revenue growth in calendar year 2025 and beyond. This outlook contrasts with some market pessimists who predict a potential downturn based on past market cycles.
The bank commended NVIDIA for its substantial financial achievements, particularly in terms of revenue and operating income, which is projected to rival or surpass that of Intel Corporation (NASDAQ:INTC) in the future. The firm's positive view is supported by NVIDIA's fundamental momentum, which is expected to continue in the near to medium term.
Despite the optimism for NVIDIA's earnings prospects and fundamental strength, Deutsche Bank indicated that the revised earnings estimates, which account for higher revenues and tax rates, already reflect the company’s earning potential in its current market valuation. Consequently, while the price target has been raised, the Hold rating remains unchanged.
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