Jefferies has maintained a confident stance on NVIDIA Corporation (NASDAQ: NASDAQ:NVDA), reiterating a Buy rating and a price target of $150.00.
The firm highlighted that despite NVIDIA's earnings falling short of the heightened expectations set before the announcement, the outlook remains positive with strong demand for its Hopper products. The anticipation had surged, with guidance of $32.5 billion trailing investor expectations that were leaning towards the $33-34 billion range.
NVIDIA's recent financial performance indicates a robust demand for its Hopper products, although the results did not meet the elevated expectations. The company's forward guidance suggested revenues that were slightly below what investors had hoped for.
However, the firm emphasized that the delay of the Blackwell product is no longer a concern, as NVIDIA has confirmed it is back on schedule, with revenue projections in the billions expected to start in the fourth quarter.
The Blackwell GPU had experienced a delay, which was already factored into market expectations, but NVIDIA has since made adjustments to the Blackwell GPU mask to enhance production yields.
Jefferies pointed out that while the return on investment (ROI) versus the total addressable market (TAM) for artificial intelligence (AI) will continue to be a topic of debate, NVIDIA's product narrative is regaining momentum.
With the Blackwell delay now behind them, NVIDIA is set to see several billion dollars in revenue from Blackwell, adding to the continued growth expected from the Hopper product line in the latter half of the year.
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