On Thursday, NVIDIA Corporation (NASDAQ:NVDA) received a significant boost to its stock price target, which was increased to $1,100 from the previous $740 by KeyBanc Capital Markets. The firm has maintained its Overweight rating on the shares, following NVIDIA's financial results for the fourth fiscal quarter and the first fiscal quarter guidance that surpassed market expectations.
The pronounced growth in NVIDIA's Data Center revenue, which saw a year-over-year increase of 409%, was a key driver behind the raised price target. This surge was attributed to robust demand from large hyperscalers, accounting for more than half of the Data Center's revenue. Additionally, improvements in supply also played a role in the company's financial performance.
KeyBanc's positive outlook is further bolstered by the anticipated ramp-up of NVIDIA's H200 in the second fiscal quarter. Moreover, the initial demand for the B100, which is expected to ramp up in the second half of the year, is already exceeding supply. These developments have led the firm to increase its estimates for NVIDIA's financial prospects.
The analyst from KeyBanc expressed optimism about NVIDIA's position within the semiconductor industry, particularly in relation to the emerging General AI market. The firm's Overweight rating reflects confidence in NVIDIA's ability to capitalize on these opportunities and lead the sector.
In summary, NVIDIA's recent fiscal results and the upcoming product launches have led to a raised price target and reaffirmed Overweight rating, as the company appears to be well-positioned to benefit from growth in the General AI segment.
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