On Thursday, KeyBanc Capital Markets maintained its Overweight rating and $180.00 price target for NVIDIA Corporation (NASDAQ:NVDA), despite a reported delay in the release of the Blackwell chip. The supply chain has indicated performance issues leading to a chip respin and a subsequent one-quarter delay. However, this is not anticipated to affect the near-term financial results or guidance for NVIDIA.
According to KeyBanc's assessment, NVIDIA is expected to report strong financial results, potentially exceeding expectations, due to robust demand for its Hopper GPUs. The delay in Blackwell's release is believed to be offset by increased bookings for Hopper. NVIDIA is also expected to shift focus to the ramp-up of the B200 GPU for hyperscalers and introduce a new, cost-effective B200A GPU targeting enterprise customers, as a replacement for the canceled B100.
The production of another GPU, the GB200, has also been affected, but shipments of NVL36/72 are still projected to occur in modest volumes during the fourth fiscal quarter. Despite these setbacks, KeyBanc's long-term revenue and earnings per share (EPS) estimates for NVIDIA remain at $222 billion and $5.16, respectively. These figures stand in contrast to the consensus estimates of $168 billion in revenue and $3.79 in EPS.
KeyBanc highlights a favorable risk/reward ratio for NVIDIA's stock, which is currently trading at 25 times KeyBanc's projected EPS for fiscal year 2026. The firm reiterates its Overweight rating on the stock, signaling confidence in NVIDIA's performance leading into the upcoming earnings report.
In other recent news, NVIDIA has been a focal point for investors due to its earnings and revenue results. Rosenblatt Securities maintained a bullish stance on NVIDIA, anticipating the company to surpass expectations for its July quarter earnings and provide an optimistic outlook for the October quarter. The firm also highlighted the Blackwell ramp as a significant event for NVIDIA, expected to influence volume in 2025.
A surprising development with NVIDIA's Hopper architecture was also noted, where hyperscale companies are transitioning to liquid-cooled rack-scale implementations, suggesting a smoother transition than initially feared. Rosenblatt also shed light on NVIDIA's networking advancements, specifically the SpectrumX Ethernet switch, expected to significantly contribute to the company's multi-billion-dollar business by the fiscal year 2025.
In the meantime, Advanced Micro Devices (NASDAQ:AMD) announced plans to acquire server manufacturer ZT Systems for $4.9 billion to enhance its artificial intelligence chip and hardware offerings. This move is expected to enable AMD to compete more effectively with NVIDIA.
Several financial firms, including Citi, HSBC, and Deutsche Bank (ETR:DBKGn), have provided their analysis on NVIDIA's performance, with ratings ranging from Buy to Hold. These analyses primarily focus on NVIDIA's earnings potential, product strategy, and the anticipated impact of potential delays in their Blackwell platform.
InvestingPro Insights
In light of KeyBanc Capital Markets' positive outlook on NVIDIA Corporation (NASDAQ:NVDA), current metrics from InvestingPro provide a detailed financial perspective. NVIDIA's substantial market capitalization of $3.16 trillion underscores its dominant position in the market. Despite a high price-to-earnings (P/E) ratio of 73.97, which may raise valuation concerns, the company's impressive revenue growth in the last twelve months, at 208.27%, indicates significant expansion in its business operations.
The company's robust gross profit margin of 75.29% over the same period reflects operational efficiency and a strong competitive edge in the Semiconductors & Semiconductor Equipment industry. This is further supported by an InvestingPro Tip that NVIDIA has maintained dividend payments for 13 consecutive years, suggesting a commitment to returning value to shareholders. Additionally, NVIDIA's stock has experienced a notable price uptick over the last six months, with a 63.64% total return, underscoring the potential for investor gains.
For investors seeking comprehensive analysis, there are additional InvestingPro Tips available, including insights on NVIDIA's earnings multiple and its position as a prominent player in its industry. Interested readers can explore these insights further by visiting https://www.investing.com/pro/NVDA.
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