On Monday, Rosenblatt Securities reaffirmed its confidence in NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a price target of $200. The firm anticipates a positive earnings report from NVIDIA, scheduled for Wednesday, November 20, after the market closes.
Expectations for NVIDIA's third fiscal quarter, ending in October, are for a modest outperformance, with revenue estimates at $32.5 billion compared to a consensus of $33.1 billion, and Non-GAAP EPS at $0.73 versus a consensus of $0.71. Similarly, forecasts for the January quarter are optimistic, with revenue estimates at $34.0 billion against a consensus of $37.0 billion, and Non-GAAP EPS at $0.72 compared to a consensus of $0.77.
The analyst notes that NVIDIA's shares carry a modest risk due to overly optimistic expectations for a near-term inflection, which is expected to materialize in the first half of calendar year 2025. Despite this, the firm views the overall setup for NVIDIA in 2025 as favorable. The anticipated product transition from the current Hopper architecture to the slightly delayed Blackwell ramp is expected to drive growth.
The analysis suggests that NVIDIA's roadmap is increasingly valuable, with a focus on vertical delivery of compute resources, both hardware and software, and an expansion of interconnect attachment products like NICs and switches. This approach is aimed at enhancing NVIDIA's full cloud service provider delivery in the data center sector.
Rosenblatt's price target of $200 is based on a projected price-to-earnings multiple of approximately 44 times the firm's estimated FY27 earnings per share for NVIDIA. The firm's outlook remains positive, underlining NVIDIA's potential to outperform despite competition from rivals such as AMD (NASDAQ:AMD) and ASIC accelerator companies Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL).
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