Nvidia delivered earnings that beat expectations. Here’s what analysts had to say

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Nvidia delivered earnings that beat expectations. Here’s what analysts had to say

The bar for Nvidia earnings was set high, and analysts feel like the chipmaker cleared it. In fiscal fourth quarter, the graphic processing unit designer earned an adjusted 89 cents per share on $39.33 billion in revenue. That exceeds the 84 cents per shares and revenue of $38.05 billion that analysts polled by LSEG had penciled in. But the company’s April gross margin guidance for 71% came slightly below Wall Street consensus. That may be the cause for the stock’s subdued post-earnings reaction. Shares were up 1% in the premarket. Here’s what analysts at some of the biggest shops on Wall Street had to say on the report. Morgan Stanley, overweight rating, $162 per share price target Analyst Joseph Moore’s target, which was raised from $152, implies about 23% upside from Wednesday’s close. “Put in perspective, this has been a remarkable growth phase for NVIDIA. In a transitional quarter, where Hopper was ⅔ of data center revenue and they were wrestling with ‘unprecedented complexity’ of new Blackwell form factors, the company still grew 18% q/q, beat guidance by almost $2bn – which has become routine, but worth repeating that no semiconductor company ever did that before NVIDIA started doing it – guided for strong growth again, and returned to very positive language around ‘amazing’ levels of Blackwell demand.” Citi, buy rating, $163 per share price target Citi’s forecast corresponds to upside of around 24%. “Blackwell sales of $11B exceeded expectations (Citi $10B) as ramp seems to be on track now after hiccups last year and Nvidia expects strong growth in 2025. Inference demand is accelerating post reasoning models like DeepSeek as long reasoning requires 100x more compute per task vs one shot inference. Gross margin

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was 170/80 bps below Citi/Street on initial Blackwell mix but expected to exit mid 70’s late FY,” wrote analyst Atif Malik. “For long-term investors willing to look through these concerns, valuation looks attractive at 23x CY26 EPS and stock offers an attractive entry point.” JPMorgan, overweight rating, $170 per share price target JPMorgan’s target calls for 29% upside going forward. “Demand for Blackwell is very strong and will continue to outstrip supply for several quarters. We believe the team did a good job on addressing AI model innovations like DeepSeek and they continue to believe that there are multiple phases/ and innovations in models that will drive overall compute complexity higher and sustain the demand for more and higher performance compute infrastructure,” said analyst Harlan Sur. “Bottom line, the team continues to maintain a 1- 2 step lead ahead of competitors with its silicon/ hardware/software platforms, and a strong ecosystem and the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time.” Barclays, overweight rating, $175 per share price target Analyst Tom O’Malley’s forecast is 33% above Nvidia’s Wednesday closing price. “From a top line perspective numbers came in a bit lighter than what we thought for April, but this was always the biggest quarter of risk in our eyes,” analyst Tom O’Malley wrote. “In all, NVDA has earned a very high bar and wasn’t able to deliver on its usual beat/raise cadence, but we think the company is executing smoothly through the product transition and now trades in the low 20x fwd P/E with the biggest risk to this year accounted for.” Evercore ISI, outperform rating, $190 per share price target Analyst Mark Lipacis’ price target was approximately 45% higher than Nvidia’s closing price on Wednesday. “We continue to view NVDA as a top pick post a JanQ 5% EPS beat and AprQ 1%

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raise with bullish comments on Blackwell ramp and demand

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. Importantly, Blackwell revs of $11bn in the JanQ were well above expectations, and mgmt. made the case for excellent visibility in CY25. Lower GMs were the fly in the ointment, but the company expects them to bounce back to mid-70% range by EoY,” analyst Mark Lipacis wrote. Bank of America, buy rating, $200 per share price target Bank of America upped its price target to $200 per share from $190, equating to 52% upside. “We reiterate our Buy rating on NVDA as the company remains in a dominant position of leading the AI market towards compute-intensive inference, agentic applications, and physical AI/robotics,” said analyst Vivek Arya. “We understand the desire to diversify portfolios away from AI/cloud, but we believe this underappreciates the solid pace of AI investments and NVDA’s compelling valuation. Visibility in non-AI markets remains muted, and many of those stocks trade at higher valuation than NVDA which does not seem reasonable to us. We expect NVDA to re-energize as excitement builds for its flagship GTC tradeshow in mid-March.”

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#Nvidia #delivered #earnings #beat #expectations #Heres #analysts

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