On Thursday, Benchmark analyst Cody Acree increased the price target for NVIDIA (NASDAQ:NVDA) shares to $1,000, up significantly from the previous target of $625, while reiterating a Buy rating on the stock. The adjustment follows NVIDIA's announcement of a robust financial performance for the January quarter, with sales reaching $22.1 billion and earnings per share (EPS) of $5.16. These figures surpassed the Street's revenue consensus by 8.4% and EPS expectations by 12.4%.
NVIDIA's recent quarterly report exceeded the Street's sales consensus by $1.71 billion and EPS consensus by $0.57. The company's guidance for the April quarter also impressed, indicating expected revenue of $24 billion, plus or minus 2%. This forecast beats the Street consensus by 8.1%, amounting to a $1.79 billion surplus. The positive guidance contributed to an 8.5% surge in NVIDIA's stock price in after-hours trading.
The company attributes its anticipated revenue growth in the first quarter of 2025 to continued strength in its Data Center business and expansion in its Professional Virtualization business. However, this is expected to be slightly offset by seasonal declines in the Gaming business. Despite the positive after-hours trading, NVIDIA's share price is still in the process of recovering from a recent drop since reaching a record high on February 16th.
NVIDIA's strong quarter and optimistic outlook for the upcoming quarter reflect the company's robust performance in key business segments. The increased price target from Benchmark signals confidence in NVIDIA's ongoing growth trajectory and market position.
InvestingPro Insights
Following the upbeat financial report from NVIDIA (NASDAQ:NVDA), the company's growth prospects continue to resonate with analysts and investors alike. The recent price target increase by Benchmark is a testament to NVIDIA's strong performance and future potential. Here are some insights based on data and tips from InvestingPro that further highlight the company's standing:
InvestingPro data shows NVIDIA's market capitalization stands at a staggering $1670.0 billion, underscoring the company's significant presence in the market. Although the P/E ratio is high at 87.03, this reflects the market's high expectations for NVIDIA's earnings growth, which is also supported by a low PEG ratio of 0.4, suggesting that the company's growth could be undervalued relative to its earnings potential. Additionally, the revenue growth for the last twelve months as of Q3 2024 is an impressive 57.07%, indicating robust business expansion.
Two notable InvestingPro Tips for NVIDIA include a perfect Piotroski Score of 9, which suggests that the company is financially healthy and has sound operating efficiency. Moreover, analysts have revised their earnings upwards for the upcoming period, with 12 analysts signaling their optimism about NVIDIA's earnings potential. This aligns with the strong guidance provided by the company for the upcoming quarter.
For investors looking to delve deeper into NVIDIA's financial health and market position, there are additional InvestingPro Tips available, such as insights into the company's valuation multiples and stock price volatility. To access these insights and more, visit https://www.investing.com/pro/NVDA. And don't forget, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 24 InvestingPro Tips for NVIDIA.
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