Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

NVIDIA stock target upgraded, rating held on AI prospects

EditorNatashya Angelica
Published 11/11/2024, 07:34 AM
© Reuters.
NVDA
-

On Monday (NASDAQ:MNDY), Piper Sandler maintained an Overweight rating on NVIDIA (NASDAQ:NVDA) shares and increased the price target to $175 from the previous $140. The adjustment comes ahead of the anticipated launch of NVIDIA's Blackwell architecture, with the firm highlighting NVIDIA's leading role in the AI accelerators market.

NVIDIA is now Piper Sandler's top large-cap pick, with projections indicating a significant rise in the total addressable market (TAM) for AI accelerators, expected to grow by about $70 billion in 2025.

NVIDIA is seen as well-placed to secure the majority of this increased TAM, with minimal concessions to its competitors in the merchant chip sector. Broadcom (NASDAQ:AVGO) is noted as another company expected to make progress in this area.

The firm's bullish stance is further supported by expectations of NVIDIA outperforming in its quarterly financial results. For the October quarter, a revenue beat of approximately $1.3 billion is anticipated, with an even higher beat of around $1.5 billion forecasted for the January quarter, which is noted to be greatly supply-constrained.

Piper Sandler also anticipates that NVIDIA's management will comment on the exceptionally strong demand for the H200, as well as the Blackwell and Grace Blackwell platforms. The increased price target to $175 reflects the firm's confidence in NVIDIA's growth trajectory and market position.

In other recent news, NVIDIA's price target was raised to $185 from $165 by Melius, maintaining a "Buy" rating, due to the company's attractive price-to-earnings ratio and promising financial projections. The firm also noted strong capital expenditure intentions among the top five AI infrastructure spenders, which could benefit NVIDIA, particularly with the anticipated revenue from its new Blackwell chips.

In the AI sector, OpenAI is advancing AI technology with human-like reasoning, using a new training technique in its latest model, o1. This technique, known as "test-time compute," allows AI models to process complex tasks more effectively, which could influence the demand for resources, including energy and chip types.

The U.S. government has directed Taiwan Semiconductor Manufacturing Co (TSMC) to stop shipping advanced chips to Chinese companies, which are typically used in AI applications. This directive follows a discovery by Tech Insights that found a TSMC chip in a Huawei AI processor, potentially breaching export controls. TSMC has informed its clients of the suspension of chip shipments and has committed to adhere to both domestic and international regulations.

These recent developments highlight the dynamic nature of the AI and semiconductor industries, with companies like NVIDIA and OpenAI pushing technological boundaries, while regulatory measures influence the flow of resources and technology.

InvestingPro Insights

NVIDIA's strong market position, as highlighted by Piper Sandler, is further supported by real-time data and insights from InvestingPro. The company's impressive financial performance is evident in its revenue growth of 194.69% over the last twelve months, with a remarkable 122.4% quarterly growth as of Q2 2025. This aligns with Piper Sandler's expectation of NVIDIA outperforming in its quarterly results.

InvestingPro Tips suggest that NVIDIA has a perfect Piotroski Score of 9, indicating strong financial health and performance. Additionally, the company boasts impressive gross profit margins, which is reflected in the data showing a gross profit margin of 75.98% for the last twelve months as of Q2 2025. These factors support Piper Sandler's bullish stance on NVIDIA's market position and growth potential.

It's worth noting that NVIDIA's stock is trading near its 52-week high, with a price at 98.57% of its 52-week high. This aligns with the strong performance and positive outlook described in the article. Investors seeking more comprehensive insights can access 23 additional InvestingPro Tips for NVIDIA, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.