Analyst Vivek Arya of Bank of America Securities reiterated a Buy rating on Nvidia (NVDA – Research Report), boosting the price target to $180.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Nvidia’s strong market position and growth potential. Firstly, Nvidia has successfully mitigated risks in China, with significant sales already factored into their projections, and the full production of Blackwell racks is underway, indicating robust demand from major hyperscalers. This is expected to contribute substantially to Nvidia’s revenue, with a promising outlook for gross margin recovery later in the year.
Additionally, Nvidia’s networking segment has shown solid growth, with its comprehensive portfolio gaining traction among hyperscalers, including new wins with Google and Meta. Arya also points out Nvidia’s impressive free cash flow margins and attractive price-to-earnings growth ratio, which underscore its financial strength. Furthermore, the diversification of AI capital expenditures beyond US clouds to international deployments, such as in Saudi Arabia, enhances Nvidia’s growth prospects. Despite potential risks associated with rapid product launches and geopolitical factors, Arya’s analysis suggests that Nvidia is well-positioned for long-term earnings power, justifying the Buy rating.
Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices. According to TipRanks, Arya has an average return of 12.7% and a 54.11% success rate on recommended stocks.
In another report released today, Bernstein also reiterated a Buy rating on the stock with a $185.00 price target.