Nvidia (NVDA – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Quinn Bolton from Needham maintained a Buy rating on the stock and has a $160.00 price target.
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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Nvidia’s strong performance and potential for growth. Despite a setback from export controls affecting H20 orders, Nvidia’s first fiscal quarter results exceeded expectations. The company faced a significant challenge with $8 billion worth of H20 orders that could not be shipped, impacting their revenue guidance for the second fiscal quarter.
However, Nvidia’s transition to Blackwell architecture is nearly complete, contributing significantly to their data center compute revenue, with major hyperscalers rapidly adopting their technology. Additionally, Nvidia’s networking revenue saw a substantial increase, driven by both Scale-Up and Scale-Out solutions, indicating robust demand and profitability. These factors, combined with improved gross margins excluding the H20 write-down, underpin Bolton’s confidence in Nvidia’s continued success and justify the Buy rating.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $180.00 price target.
Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.