On Thursday, Benchmark, a financial analysis firm, increased its price target on shares of NVIDIA (NASDAQ:NVDA) to $190 from the previous $170, while maintaining a Buy rating. The adjustment reflects NVIDIA's substantial market performance, with its stock soaring 760% since early 2023, significantly outpacing the S&P 500's 57% increase during the same period.
Benchmark's analysis suggests that despite NVIDIA's rapid growth and a market capitalization surpassing $3.5 trillion, the company's shares continue to offer a compelling value for investors who can overlook short-term market fluctuations. The firm views the recent sell-off as an opportunity to invest in a company that is pivotal to the AI industry's evolution and how technology interacts with society.
The firm's optimistic outlook is further supported by NVIDIA's expected growth rates, with sales and earnings forecasted to increase by 48% and 45%, respectively, in FY26. Benchmark's rationale for the new price target is based on a PEG rate multiple of 1x their FY26 earnings per share (EPS) estimate of $4.22, which suggests a 34% upside from pre-market levels.
Benchmark believes that NVIDIA's consistent fundamental performance and reliable execution of its business model grant investors a unique degree of visibility. The firm considers the new price target of $190 to be a conservative estimate for a company that is excelling fundamentally.
In other recent news, NVIDIA has been making headlines due to its impressive financial performance and strategic advancements. The company reported a record-breaking total revenue of $35.1 billion, surpassing expectations. NVIDIA's revenue outlook for the next quarter aligns with market forecasts at $37.5 billion.
Several investment firms including Needham, Melius Research, Goldman Sachs, and Citi have increased their price targets for NVIDIA, reflecting the company's strong financial performance and potential for continued growth.
NVIDIA's latest product, Blackwell, is expected to drive growth despite potential short-term pressure on gross margins. The company's CEO, Jensen Huang, has expressed confidence in the future of artificial intelligence (AI), which is expected to drive the expansion of cluster sizes and support NVIDIA's market dominance.
Analysts from various firms have updated their stances, reflecting the ongoing adjustments in market expectations based on their performance and industry developments.
These are recent developments that highlight NVIDIA's strong financial performance and strategic position within the rapidly expanding AI industry. The company's Blackwell production is reportedly ahead of schedule, with shipments expected to surpass previous forecasts.
The company has addressed investor concerns, particularly regarding the scaling of Large Language Models (LLMs), and reassured stakeholders about its production capabilities. Analysts from various firms have adjusted their targets for NVIDIA, reflecting the ongoing adjustments in market expectations based on their performance and industry developments.
InvestingPro Insights
NVIDIA's remarkable performance, as highlighted by Benchmark, is further supported by real-time data from InvestingPro. The company's market capitalization stands at an impressive $3.57 trillion, underscoring its dominant position in the semiconductor industry. NVIDIA's revenue growth is particularly noteworthy, with a staggering 194.69% increase over the last twelve months as of Q2 2025, aligning with Benchmark's bullish outlook on the company's future prospects.
InvestingPro Tips reveal that NVIDIA has a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency. This score, combined with the company's impressive gross profit margins and analysts' anticipation of continued sales growth, reinforces Benchmark's positive stance on NVIDIA's value proposition.
The company's P/E ratio of 67.04 might seem high at first glance, but an InvestingPro Tip suggests that NVIDIA is actually trading at a low P/E ratio relative to its near-term earnings growth. This perspective aligns with Benchmark's view that the stock still offers compelling value despite its significant price appreciation.
For investors seeking a more comprehensive analysis, InvestingPro offers 22 additional tips on NVIDIA, providing a deeper understanding of the company's financial position and market potential.
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