Nvidia (NVDA) delivered another standout performance in its Fiscal third quarter, with record-breaking data center revenues of around $30.8 billion, exceeding the Street’s expectations of $29.1 billion. The surge was fueled by robust demand for its Hopper products, particularly the H200, which reached double-digit billions in sales.
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However, investors did not seem to be enthused about the results, probably expecting more from the chip major. On the other hand, Wall Street analysts remained upbeat about the company’s blockbuster performance and its guidance.
Bernstein Analyst Praises the Results
Five-star-rated Bernstein analyst Stacy Rasgon praised the results, reiterating a Buy, and raised his price target on the stock to $175 from $155. The analyst’s new price target implied an upside potential of 19.6% from current levels.
While the analyst acknowledged concerns over a smaller-than-typical guidance beat and a projected slide in gross margins next year, Rasgon termed the outlook as “respectable,” as the company battles supply constraints and issued a potentially cautious guidance.
Furthermore, Rasgon pointed out the extraordinary demand for the company’s next-generation Blackwell products, which is likely to outpace supply for the foreseeable future.
Piper Sandler Analyst Remains Positive about NVDA
Piper Sandler analyst Harsh Kumar echoed this sentiment, suggesting that NVDA’s conservative guidance is because the company is going through a product transition phase. He anticipates that the company will beat earnings by a higher margin starting from April next year. He also reiterated his Buy rating on the stock with a price target of $175. The analyst’s price target implies an upside potential of 19.6% from current levels.
What Is the Target Price for NVDA Stock?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 39 Buys and three Holds. Over the past year, NVDA has skyrocketed by more than 100%, and the average NVDA price target of $165.18 implies an upside potential of 12.7% from current levels.
