On Thursday, Oppenheimer maintained its positive outlook on NVIDIA (NASDAQ:NVDA) shares, raising the stock's price target from $150.00 to $175.00 and keeping an Outperform rating.
The firm's optimism is driven by the anticipation of strong third-quarter results for October and a solid outlook for the fourth quarter in January, due to the continued demand for Artificial Intelligence (AI) accelerators from Cloud Service Providers (CSPs) and enterprises.
The analyst at Oppenheimer highlighted that NVIDIA's Hopper architecture is leading the near-term growth, while the upcoming Blackwell platform is expected to begin its ramp in the fourth quarter.
Despite supply constraints due to CoWoS-L capacity, Blackwell is projected to contribute low to mid-single digit billions in dollars during the quarter. Furthermore, a significant increase in Blackwell's production is forecasted for the first quarter of the next financial year, starting in April.
Investor conversations indicate that the buy-side is modeling for 5-6 million GPU units in the coming year. The product mix for calendar year 2025 is likely to favor drop-in HGX modules and air-cooled NVL36 GB200 racks, which are compatible with existing data center infrastructure and are expected to resolve current issues with liquid cooling.
NVIDIA's rack-scale solutions are seen as a significant revenue driver, offering approximately a tenfold increase in average selling price (ASP) compared to individual modules, inclusive of CPU and networking content. The company's exposure to the Chinese market accounts for 12% of sales, and gross margins are expected to remain stable, close to 72%, through the next year, with potential for further upside.
The firm's analyst concluded that NVIDIA is well-positioned to capitalize on the AI sector, benefiting from a comprehensive full-stack AI hardware and software offering.
In other recent news, NVIDIA has enjoyed a flurry of positive analyst attention. Raymond (NS:RYMD) James increased its price target on NVIDIA shares to $170, citing robust demand for the Hopper architecture and Blackwell processors. The firm also projects NVIDIA's revenue to reach around $34 billion for the third quarter of fiscal year 2025, surpassing consensus estimates.
Meanwhile, Wedbush Securities raised its price target for NVIDIA to $160, attributing the adjustment to consistent performance and anticipated growth in the AI sector. HSBC also increased its price target for NVIDIA to $200, highlighting growth in the data center sector.
These recent developments follow Susquehanna's price target upgrade for NVIDIA to $180, based on expected strong earnings results and the potential impact of NVIDIA's H100/H200 and Blackwell products. NVIDIA's revenue is further bolstered by increased capital expenditure plans from major hyperscale companies such as Meta (NASDAQ:META) and Amazon (NASDAQ:AMZN).
In a significant technological advancement, NVIDIA, in collaboration with SoftBank (TYO:9984) Corp, has launched the world's first combined artificial intelligence and 5G telecommunications network, known as an artificial intelligence radio access network (AI-RAN). This development has potential applications in various sectors, including autonomous vehicles and robotics control.
Both Citi and Redburn-Atlantic have given NVIDIA a 'buy' rating, reflecting a positive outlook on the company's prospects in the field of accelerated computing. These are among the recent developments surrounding NVIDIA.
InvestingPro Insights
NVIDIA's strong market position and growth potential, as highlighted in the article, are further supported by recent data from InvestingPro. The company's market capitalization stands at an impressive $3.59 trillion, reflecting its dominant position in the semiconductor industry. NVIDIA's revenue growth has been nothing short of extraordinary, with a 194.69% increase over the last twelve months as of Q2 2025, aligning with the article's emphasis on strong demand for AI accelerators.
InvestingPro Tips reinforce the company's robust financial health and market leadership. NVIDIA boasts a perfect Piotroski Score of 9, indicating strong operational efficiency and financial stability. This score supports Oppenheimer's optimistic outlook on the company's future performance.
Moreover, NVIDIA's impressive gross profit margins, which InvestingPro data shows at 75.98% for the last twelve months, underscore the company's ability to maintain profitability even as it scales operations to meet increasing demand.
The article's discussion of NVIDIA's product mix and revenue drivers is complemented by the InvestingPro Tip highlighting NVIDIA as a prominent player in the Semiconductors & Semiconductor Equipment industry. This status is likely to be further cemented by the anticipated ramp-up of the Blackwell platform mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 22 additional tips for NVIDIA, providing a deeper understanding of the company's financial position and market potential.
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