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NVIDIA retains top pick status with buy rating on robust upward trend

EditorNatashya Angelica
Published 29/08/2024, 14:56
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On Thursday, TD Cowen maintained a bullish stance on shares of NVIDIA Corporation (NASDAQ:NVDA), reiterating a Buy rating and a $165.00 price target. The firm's assessment follows NVIDIA's latest financial results, which surpassed expectations and indicated a robust upward trend.

The analyst from TD Cowen highlighted NVIDIA's strong performance amidst the significant developments in accelerated computing and generative AI, acknowledging minor setbacks that have since been resolved.

The analyst's comments underscored the company's success in what is described as the "largest/fastest datacenter compute ramp in history." Despite a few hiccups and slight delays, these issues were deemed to have been effectively addressed. The emphasis was on the positive aspects of NVIDIA's quarter, suggesting that the company's current trajectory is more relevant than the temporary challenges it faced.

NVIDIA's recent achievements were characterized as a "remarkably strong beat/raise quarter," signaling confidence in the company's market leadership position. The firm's ongoing growth in the burgeoning fields of accelerated computing and generative AI appears to be a driving force behind the analyst's unwavering bullish thesis.

The statement from TD Cowen concluded with a reaffirmation of NVIDIA's status as a top pick in the market, with the analyst expressing a clear bullish outlook on the stock. The reiterated price target of $165 reflects the firm's expectation that NVIDIA's shares will continue to perform well in the market.

Investors and market watchers are likely to keep a close eye on NVIDIA's stock performance, especially given the highlighted potential in key technology sectors. The company's ability to overcome past obstacles and continue on a path of growth and innovation seems to have solidified its favorable position among analysts.

In other recent news, NVIDIA Corporation has been the subject of attention from multiple analyst firms following strong financial results. Craig-Hallum and Truist Securities have both raised their target prices for NVIDIA to $165 and $148 respectively, with a maintained Buy rating.

Rosenblatt Securities continues to hold a Buy rating with a $200 target, while Baird and Needham have increased their respective targets to $150 and $145. These adjustments come after NVIDIA's recent earnings report, which surpassed consensus expectations, with record revenues of $30 billion.

The company projects a third-quarter revenue of $32.5 billion, fueled by anticipated growth in its Hopper architecture and Blackwell products. Analysts anticipate that the transition from the Hopper line to the new Blackwell generation will contribute to NVIDIA's sales in the upcoming quarters.

Despite concerns regarding the company's gross margin outlook due to the transition to the Blackwell GPU, Summit Insights maintained its Buy rating, projecting a resolution of these challenges by early 2025.

In addition to these developments, NVIDIA has announced a $50 billion share repurchase authorization, reflecting confidence in its financial health and future prospects. The company's financial model has been updated to reflect higher sales projections, with estimates now at approximately $37 billion for the fourth quarter. These are among the recent developments at NVIDIA Corporation.

InvestingPro Insights

NVIDIA Corporation (NASDAQ:NVDA) continues to capture the attention of investors with its dynamic role in the tech industry, particularly in the fields of accelerated computing and generative AI. Reinforcing this outlook, InvestingPro data shows a remarkable revenue growth of 208.27% over the last twelve months as of Q1 2025, with a gross profit margin of 75.29%, highlighting the company's strong profitability. The data further illustrates NVIDIA's market strength with a high return on assets of 70.1%, signaling efficient asset utilization.

From an investment perspective, the InvestingPro Tips reflect NVIDIA's financial health and market position. With a perfect Piotroski Score of 9, the company demonstrates solid financials, and analysts anticipate sales growth in the current year, which could be a catalyst for future stock performance.

Moreover, NVIDIA has maintained dividend payments for 13 consecutive years, providing a degree of income stability for shareholders. For those seeking more in-depth analysis, there are over 15 additional InvestingPro Tips available, including insights on valuation multiples and stock price volatility, which can be found at https://www.investing.com/pro/NVDA.

The combination of NVIDIA's strong financial metrics and positive analyst sentiment underscores the company's robust standing in the market. As NVIDIA continues to innovate and expand its presence in key technology sectors, these InvestingPro Insights offer valuable context for investors considering the company's stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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