On Tuesday, Stifel, a financial services company, maintained its Buy rating on NVIDIA (NASDAQ:NVDA) shares, with a price target set at $165.00. The firm's outlook comes ahead of NVIDIA's financial results for the second quarter of fiscal year 2025, which are scheduled to be released after the market closes on Wednesday, August 28.
The analyst from Stifel acknowledged the recent concerns about near-term production targets for certain Blackwell series SKUs but indicated that any potential delays in production are expected to be short-term, spanning months rather than quarters. This perspective is based on conversations with industry participants.
The firm remains optimistic about the demand environment for NVIDIA's H-Series SKUs, anticipating a scenario where NVIDIA's results for July and guidance for October may surpass expectations. Stifel's confidence is also underpinned by positive feedback from the industry regarding these products.
Regarding NVIDIA's strategic direction, Stifel anticipates no significant shifts in the company's messaging or focus, which has been consistent since the first quarter results were reported. NVIDIA's long-term roadmap and ongoing investment in both organic and collaborative software offerings are expected to remain central to its strategy.
Supporting Stifel's positive stance on NVIDIA is the recent commentary from supply chain companies in the optical transceiver module industry. These comments suggest an increase in cluster sizes, a development Stifel believes is favorable for NVIDIA as the company heads into calendar year 2025.
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