On Thursday, Evercore ISI exhibited continued confidence in NVIDIA (NASDAQ:NVDA), nudging its price target up to $190 from $189, while maintaining an Outperform rating on the stock. The firm's stance comes after NVIDIA reported an 8% earnings per share (EPS) beat for the October quarter and provided a 1% higher outlook for the January quarter.
The analyst from Evercore ISI highlighted NVIDIA's ability to address investor concerns, particularly regarding the scaling of Large Language Models (LLMs). NVIDIA's CEO has argued that pre-training scaling is ongoing and that post-training scaling has shifted from human to AI feedback and synthetic data. Additionally, the CEO pointed out the need for increased computational power for inference time scaling, which involves multi-path planning and varied computational methods.
NVIDIA has also reassured stakeholders about its production capabilities, confirming that the Blackwell production is in full swing. The company now expects January quarter shipments to surpass previous forecasts. This update reflects NVIDIA's operational efficiency and its potential to meet or exceed market expectations.
The small increase in the price target reflects a positive outlook on NVIDIA's performance and its strategic approach to scaling and production. The Outperform rating indicates that Evercore ISI believes NVIDIA will continue to perform better than the broader market.
Investors and market watchers will likely keep a close eye on NVIDIA's stock performance and shipment figures in the coming months, as these developments could influence the company's market position and financial health.
In other recent news, NVIDIA has been a focal point of analysts due to its robust financial performance and strategic position in the AI industry. The company's financial results for the third fiscal quarter of 2025 showcased a record-breaking total revenue of $35.1 billion, a 94% increase from the previous year, largely due to robust demand for AI infrastructure. The semiconductor giant's outlook for the fourth quarter ending in January met expectations with a forecast of $37.5 billion in revenue. However, NVIDIA's gross margin could initially decline due to the early ramp-up of their Blackwell architecture but is expected to recover later in the year.
Several analysts' firms including BofA Securities, Barclays (LON:BARC), Jefferies, Wedbush Securities, and Truist Securities have maintained positive ratings on NVIDIA and adjusted their price targets. BofA Securities maintained its Buy rating and $190.00 price target on NVIDIA, Barclays maintained an Overweight rating and increased the price target to $160, Jefferies maintained a Buy rating with a price target of $185, Wedbush Securities raised its price target from $160 to $175, and Truist Securities increased its price target to $169, reaffirming a Buy rating on the stock.
These recent developments underscore NVIDIA's strong financial performance and its strategic position within the rapidly expanding AI industry. The company expects a temporary dip in gross margins during the Blackwell product ramp, but projects a return to mid-70s margins shortly. These updates provide investors with a snapshot of NVIDIA's recent performance and the potential impact of its upcoming Blackwell technology.
InvestingPro Insights
NVIDIA's stellar performance, as highlighted in the article, is further substantiated by real-time data and expert analysis from InvestingPro. The company's market capitalization stands at an impressive $3.56 trillion, reflecting its dominant position in the semiconductor industry. NVIDIA's revenue growth is particularly noteworthy, with a staggering 194.69% increase over the last twelve months, aligning with the article's mention of the company's strong earnings beat and positive outlook.
InvestingPro Tips reveal that NVIDIA has a perfect Piotroski Score of 9, indicating robust financial health and operational efficiency. This score supports the company's ability to meet and exceed production expectations, as mentioned in the article regarding Blackwell production and increased January quarter shipments.
Additionally, NVIDIA's gross profit margin of 75.98% underscores its "impressive gross profit margins," as noted in the InvestingPro Tips. This high profitability metric reinforces NVIDIA's strong market position and ability to maintain pricing power in the competitive semiconductor landscape.
For investors seeking a more comprehensive analysis, InvestingPro offers 22 additional tips on NVIDIA, providing deeper insights into the company's financial health and market position.
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