TD (TSX:TD) Cowen has expressed continued confidence in NVIDIA (NASDAQ: NVDA), maintaining a Buy rating and a $165.00 price target for the company's shares.
The firm's stance is based on the anticipation of strong demand for NVIDIA's Hopper products, which is expected to offset any potential gaps during the product's ramp-up period.
The analyst from TD Cowen highlighted the challenges in precisely timing and modeling the transition due to the artificial boundary between the January and April quarters. Despite these challenges, the firm predicts that the current demand trends in AI spending will remain robust. The risk of underinvestment in AI is believed to be greater than the risk of overspending, suggesting a favorable market for NVIDIA's offerings.
TD Cowen's reiteration of the Buy rating is accompanied by an optimistic view of NVIDIA's future, with forecasts for fiscal year 2026 being adjusted upwards. The firm's commentary underscores their belief in NVIDIA's sustained growth and their position that the company remains a top pick in the market, with a maintained price target of $165.
In other recent news, NVIDIA Corporation (NASDAQ:NVDA) has been reaffirmed a Buy rating by Citi, which anticipates significant growth in the company's GPU sales in the coming years. This growth is driven by the increasing relevance of GPUs in artificial intelligence (AI) and machine learning (ML) infrastructure. Citi's projections foresee NVIDIA's GPU compute sales surging by 118% in 2024 and 84% in 2025, with sales to hyperscalers also expected to increase substantially.
Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC) reported a 40% increase in its third-quarter net profit, largely due to strong demand for advanced chips used in AI applications. TSMC's financial performance has been boosted by its association with major tech companies, including NVIDIA and Apple (NASDAQ:AAPL).
In other developments, Advanced Micro Devices (NASDAQ:AMD) is set to unveil a series of new AI processors, marking its progress in the AI chip market. The company's AI chip revenue forecast was adjusted to $4.5 billion for the year, up from the previously projected $4 billion.
Foxconn Technology Group announced record-breaking revenue for the third quarter, attributed to increased demand for AI servers. Foxconn's financial performance was particularly strong in its cloud and networking products division, which caters to notable clients, including NVIDIA.
Lastly, Citi maintains a $150 price target on NVIDIA shares, reiterating a Buy rating based on projections of strong year-over-year growth in cloud data center capital expenditures. The firm also emphasized NVIDIA's lead in total cost of ownership (TCO) and return on investment (ROI) as key factors for data center operators.
InvestingPro Insights
NVIDIA's strong market position, as highlighted by TD Cowen's analysis, is further supported by real-time data from InvestingPro. The company's impressive financial performance is evident in its revenue growth of 194.69% over the last twelve months, with a remarkable 122.4% quarterly growth as of Q2 2025. This aligns with TD Cowen's optimistic outlook on NVIDIA's future performance.
InvestingPro Tips reveal that NVIDIA has a perfect Piotroski Score of 9, indicating strong financial health. This score, combined with the company's impressive gross profit margins, supports TD Cowen's confidence in NVIDIA's ability to navigate market dynamics and maintain its growth trajectory.
The company's strong position in the AI sector is reflected in its high valuation multiples. NVIDIA is trading at a P/E ratio of 62.74, which is considered high relative to the market. However, this premium valuation is justified by the company's extraordinary growth rates and market leadership in AI technologies.
For investors seeking a more comprehensive analysis, InvestingPro offers 22 additional tips for NVIDIA, providing a deeper understanding of the company's financial health and market position.
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