On Tuesday, KeyBanc Capital Markets adjusted its outlook on NVIDIA Corporation (NASDAQ:NVDA) shares, increasing the price target to $180 from the previous $130 while maintaining an Overweight rating on the stock. The firm's decision comes in light of strong demand signals for NVIDIA's products, particularly in the data center segment.
The analyst noted that despite the upcoming second half of 2024 launch of NVIDIA's Blackwell, there is no indication of a demand slowdown for the H100, with rush orders continuing to come in. This sustained interest underpins the analyst's confidence in the company's performance.
Moreover, the GB200, NVIDIA's latest offering, is seeing higher interest and demand than initially anticipated. The majority of the product mix is expected to be the NVL72 model over the NVL36, indicating a preference for the higher-end configuration among customers.
KeyBanc's report further suggests that the current demand trajectory for NVIDIA's GB200 is poised to bolster data center revenues, projecting that it could support over $200 billion in revenue by the year 2025. This optimistic forecast reflects the company's strong positioning in the market and the growing needs of the data center industry.
The analyst's comments underscore the potential for NVIDIA's continued growth and market leadership, particularly as it expands its data center offerings with new technologies and products that meet evolving industry demands.
In other recent news, Nvidia, a major player in the tech sector, has seen several important developments. New Street Research downgraded Nvidia's rating from Buy to Neutral, citing concerns over the deceleration of revenue growth and increased market share by competitors. Despite this, the firm acknowledged the enduring strength of Nvidia's business.
In a contrasting development, Nvidia is set to face antitrust charges in France for alleged anti-competitive behavior, marking the first time the company will face such charges. This follows investigations that included dawn raids focusing on Nvidia.
Shareholders at Nvidia's 2024 Annual Meeting approved several significant proposals, including the election of all twelve director nominees, advisory approval of executive compensation, and ratification of the company's independent registered accounting firm, PricewaterhouseCoopers LLP. A proposal to amend the company's voting standards was also approved.
Cantor Fitzgerald maintained its Overweight rating on Nvidia and increased the stock's price target, citing Nvidia's role in driving technological innovation and reducing computing costs.
Lastly, Nvidia briefly surpassed Microsoft (NASDAQ:MSFT) in market value, contributing significantly to the tech sector's overall 30% leap. However, this was short-lived due to profit-taking activities and concerns over its high valuation.
InvestingPro Insights
As NVIDIA (NASDAQ:NVDA) garners an upbeat assessment from KeyBanc Capital Markets, real-time data from InvestingPro echoes this positive sentiment. NVIDIA's market capitalization stands at a robust $3.15 trillion, reflecting the company's significant presence in the tech industry. Its revenue growth has been exceptional, with a staggering increase of 208.27% over the last twelve months as of Q1 2025, which is in line with KeyBanc's optimistic revenue projections for the company.
InvestingPro Tips highlight NVIDIA's strong financial health and market performance. The company has a perfect Piotroski Score of 9, indicating a very healthy financial state. Additionally, NVIDIA's cash flows are robust enough to sufficiently cover interest payments, a sign of financial resilience. For investors looking to delve deeper into NVIDIA's market prospects, there are over 20 additional InvestingPro Tips available, which can be accessed with the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
With NVIDIA trading at a high earnings multiple, investors may be paying a premium for growth expectations. Nonetheless, the company's substantial revenue growth and the high gross profit margin of 75.29% highlight its ability to capitalize on its market position and maintain profitability. NVIDIA's latest offerings in the data center segment appear to align with the strong demand signals that KeyBanc Capital Markets has identified, underpinning a future of potential growth and market leadership.
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