Analysts at Needham & Company expect Nvidia (NASDAQ:NVDA) to be the third company to reach a $3 trillion market capitalization after the company's latest earnings, which topped expectations and saw the company issue upbeat guidance.
Nvidia reported Q1 EPS of $6.12, $0.53 better than the analyst estimate of $5.59, while revenue for the quarter came in at $26.04 billion, above the consensus estimate of $24.65 billion.
In addition, NVIDIA expects second-quarter 2025 revenue of $28 billion, plus or minus 2%, versus the consensus of $26.66 billion.
"NVDA delivered another strong beat and raise, well above our estimates but inline with more-bullish buy-side expectations," said Needham & Company.
In order for Nvidia to hit a $3 trillion market cap, Needham says the company's share price would need to reach $1,200, a mark they see it reaching. The firm raised its 12-month target to that level from $850 in its latest note, maintaining a Buy rating on the stock.
Needham is not the only firm with a $1,200 or more price target on Nvidia, with at least 16 analysts seeing the stock climbing to those highs.
Jefferies and Loop Capital also have $1,200 targets on Nvidia, while Wolfe Research has a $1,250 target, Evercore ISI has a target of $1,310, and Cantor Fitzgerald has a target price of $1,400 on the company's shares, representing a Street high.
Following the Nvidia earnings report, Needham said: "H100 supply catching up to demand paired with constrained H200 and B100 supply may introduce some near-term product transition risk, but we would be buyers on any short-lived revenue deceleration."
They also believe "Blackwell's 100+ configurations demonstrates diversity of the platform," while "Sovereign AI is material (HSD $bn in FY25) and adds duration to the overall demand cycle."
The firm noted that Chinese data center revenue is down significantly and expected to remain depressed.