On Thursday, DA Davidson maintained a neutral stance on NVIDIA Corporation (NASDAQ:NVDA), confirming a price target of $90.00. The firm's outlook follows NVIDIA's report of robust revenue growth, particularly noting that the company's Data Center revenue exceeded expectations. This performance is underpinned by the anticipation that demand for NVIDIA's Hopper products will rise in the latter half of the fiscal year.
The company's success in the data center segment is attributed to the growing need for artificial intelligence (AI) computing power. Research laboratories are pushing the boundaries, which, coupled with supply constraints faced by major hyperscaler customers building out their AI infrastructure, is expected to keep demand for AI compute resources elevated in the near term.
Despite the positive indicators, DA Davidson's neutral rating persists, with the firm's Fiscal Year 2025 (FY25) estimates remaining below the consensus. The firm also anticipates a sequential decline in Fiscal Year 2026 (FY26), positioning its estimates at the lower end of Wall Street's projections.
NVIDIA's financial health and market position are closely watched by investors and industry analysts alike, as the company continues to navigate the competitive and fast-evolving tech landscape. The firm's analysis suggests a cautious outlook, reflecting a balance between NVIDIA's current growth trajectory and longer-term market expectations.
In other recent news, NVIDIA Corporation has been the focal point of several analyst updates and financial results. The company's financial performance has consistently exceeded expectations, with second-quarter sales and earnings per share surpassing estimates by 5% and 6% respectively, as reported by Oppenheimer.
NVIDIA's robust performance has prompted several price-target upgrades. Raymond James increased its target from $120 to $140, while BofA Securities raised its target from $150 to $165. Both firms cited robust sales and increased earnings per share projections for fiscal years 2025 and 2026.
Wolfe Research and Piper Sandler maintained their positive outlook on NVIDIA, with price targets of $150 and $140 respectively. Both firms highlighted the potential revenue boost from the upcoming Blackwell product. Bernstein also increased its target to $155, expressing optimism about NVIDIA's data center growth.
Despite a slight dip in gross margin outlook and minor setbacks due to yield and manufacturing issues with the Blackwell product, analysts predict a robust increase in the fourth fiscal quarter. NVIDIA's management confirmed that production ramp-up for Blackwell is still on schedule for the fourth quarter, and the company expects to ship several billion dollars in Blackwell revenue during this period.
NVIDIA's diversified revenue sources, including strong demand in Data Center Artificial Intelligence and growth in its networking segment, have contributed to its strong performance. The company has also seen a notable increase in sales in China and robust performance in specific sectors such as Consumer Internet and Enterprise businesses.
These are the key recent developments for NVIDIA Corporation.
InvestingPro Insights
DA Davidson's neutral stance on NVIDIA Corporation is complemented by notable metrics that highlight the company's financial performance and market position. According to InvestingPro data, NVIDIA boasts a substantial market capitalization of $3090 billion, reflecting its significant presence in the industry. The company's price-to-earnings (P/E) ratio stands at 72.84, indicating a high earnings multiple that investors are willing to pay, possibly due to NVIDIA's growth prospects and dominant industry position. Furthermore, NVIDIA's impressive revenue growth of over 208% in the last twelve months as of Q1 2025 underscores its robust financial performance and the successful scaling of its operations.
InvestingPro Tips also reveal that NVIDIA has a perfect Piotroski Score of 9, suggesting strong financial health, and analysts anticipate further sales growth in the current year. This aligns with the positive outlook on NVIDIA's data center revenue and the expected demand for its Hopper products. Additionally, NVIDIA's ability to maintain dividend payments for 13 consecutive years demonstrates a commitment to shareholder returns, even as the company invests heavily in innovation and growth.
For readers seeking a deeper analysis, there are over 19 additional InvestingPro Tips available that provide a comprehensive view of NVIDIA's financial health and market potential. These insights, available on the InvestingPro platform, can help investors make more informed decisions regarding their investment in NVIDIA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.