Needham raised the firm’s price target on Nvidia (NVDA) to $160 from $145 and keeps a Buy rating on the shares. The company delivered another strong beat and raise quarter, with results well above the firm’s estimates but guidance was below the more bullish buy-side expectations, the analyst tells investors in a research note. Needham adds however that Nvidia management not only silenced the Blackwell overheating rumors, it raised its Q4 Blackwell revenue guide. The firm also notes that it assumes the company’s gross margins will trough in Q1 and return to 75% by FY26, though it is reducing its FY26 gross margin assumptions by 30bps on near-term complexities of the Blackwell ramp.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on NVDA:
- Nvidia guidance ‘below bull-case,’ but ‘still strong,’ says BofA
- Nvidia commentary suggests demand trajectory still intact, says Loop Capital
- Nvidia price target raised to $169 from $167 at Truist
- Nvidia price target raised to $190 from $170 at Benchmark
- Nvidia price target raised to $190 from $150 at Baird