On Thursday, Truist Securities updated its outlook on NVIDIA Corporation (NASDAQ:NVDA) shares, increasing its price target to $169 from the previous $167, while reaffirming a Buy rating on the stock. The adjustment follows NVIDIA's robust third-quarter performance and encouraging fourth-quarter guidance, despite some challenges.
The semiconductor giant's recent quarterly results showcased its resilience and potential for growth, according to Truist Securities. The firm highlighted NVIDIA's increased confidence in the progress of its next-generation GPU, codenamed Blackwell, which is expected to offset any negative effects from a fourth-quarter revenue forecast that was considered merely "good" instead of "excellent."
Truist Securities expressed a positive outlook on NVIDIA's standing as a leading AI company, citing its culture of innovation, strong market position, and substantial investments in software, pre-trained models, and services. These factors contribute to NVIDIA's competitive edge in the AI sector.
The firm also updated its earnings per share (EPS) projection for the calendar year 2025, raising it slightly from $4.18 to $4.22. The new price target of $169 is based on a 40 times multiple of the anticipated EPS, which represents a historical 5x discount to NVIDIA's high-growth semiconductor peers.
Investors and market watchers are likely to keep a close eye on NVIDIA's stock performance, as the company continues to navigate the competitive and rapidly evolving tech landscape, particularly in the areas of AI and GPU technology.
In other recent news, NVIDIA Corporation has reported record-breaking total revenue of $35.1 billion, marking a 94% increase from the previous year, largely attributed to robust demand for AI infrastructure, with data center revenues climbing to approximately $30.8 billion. The successful launch of NVIDIA Hopper and the Blackwell architectures have also contributed to the company's financial success.
Analysts from Piper Sandler, TD (TSX:TD) Cowen, Cantor Fitzgerald, Baird, Raymond (NS:RYMD) James, and Mizuho (NYSE:MFG) have all recently maintained positive ratings on NVIDIA, with price targets ranging from $170 to $195. NVIDIA anticipates a Q4 revenue of $37.5 billion and expects a temporary dip in gross margins during the Blackwell product ramp, but projects a return to mid-70s margins shortly.
These recent developments underscore NVIDIA's strong financial performance and its strategic position within the rapidly expanding AI industry.
InvestingPro Insights
NVIDIA's recent performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $3.56 trillion, reflecting its dominant position in the semiconductor industry. NVIDIA's revenue growth of 194.69% over the last twelve months as of Q2 2025 underscores the company's exceptional performance, supporting Truist Securities' positive outlook.
InvestingPro Tips highlight NVIDIA's strong financial health and market position. The company boasts a perfect Piotroski Score of 9, indicating robust financial strength. Additionally, NVIDIA has maintained dividend payments for 13 consecutive years, demonstrating consistent shareholder returns. These factors contribute to the firm's attractiveness as an investment, aligning with Truist Securities' Buy rating.
The company's P/E ratio of 67.04 and high earnings multiple, as noted in the InvestingPro Tips, reflect investor optimism about NVIDIA's future growth prospects. This valuation is particularly interesting when considering the company's impressive gross profit margin of 75.98% for the last twelve months as of Q2 2025, which supports Truist Securities' confidence in NVIDIA's innovative culture and market leadership.
For investors seeking more comprehensive analysis, InvestingPro offers 22 additional tips on NVIDIA, providing a deeper understanding of the company's financial health and market position.
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