On Thursday, Susquehanna maintained a positive stance on NVIDIA (NASDAQ:NVDA), raising the stock's price target from $160.00 to $180.00. The firm anticipates strong results in the upcoming earnings report slated for November 20, based on current checks around NVIDIA's H100/H200 and the early stages of Blackwell products. Susquehanna expects these products to stay on track, although they recognize that the introduction of new products could introduce some variability in margins and potential dilution levels.
The analyst pointed to continued demand in the data center (DC) and artificial intelligence (AI) sectors as a key driver for NVIDIA's growth. This demand is bolstered by increased capital expenditure plans from major hyperscale companies such as Meta (NASDAQ:META) and Amazon (NASDAQ:AMZN). Additionally, significant GPU purchases are expected to persist through the second half of the year, as indicated by a statement from xAI about acquiring a 100,000 unit H100 cluster in just 19 days.
NVIDIA's revenue from Enterprise and Consumer Internet, which accounted for over 50% of the company's data center revenue in the last quarter, along with Sovereign AI initiatives, are likely to further propel demand for their products. On the supply side, NVIDIA has noted improvements, with reports confirming shorter lead times and reduced aftermarket pricing for Hopper GPUs. This suggests that while the supply situation is getting better, the overall impact on the company's performance is complex.
The forthcoming earnings report is expected to provide a clearer picture of NVIDIA's financial health and the impact of new product lines on the company's profitability. Investors and industry watchers will be looking closely at the details disclosed on November 20 to assess the company's trajectory in the face of evolving market demands and supply chain dynamics.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) and SoftBank (TYO:9984) Corp have made significant strides in the technology sector, successfully launching the world's first combined artificial intelligence (AI) and 5G telecommunications network. This AI-powered 5G network, known as an artificial intelligence radio access network (AI-RAN), can simultaneously run AI and 5G workloads. This development has potential applications in various sectors, including autonomous vehicles and robotics control.
In a related development, Amazon Web Services (AWS) has announced a strategic move to boost its presence in the AI sector by offering $110 million in free computing power to researchers. The initiative is designed to promote the use of Trainium, AWS's custom AI chip, which competes with offerings from Nvidia and other tech giants.
In the semiconductor sector, Citi analysts predict a rebound and suggest it may be an opportune time to invest. The firm has given a 'buy' rating to several companies within the sector, including Nvidia. Texas Instruments (NASDAQ:TXN), another semiconductor company, reported a 9% sequential revenue increase to $4.2 billion in its Q3 2024 earnings call.
Redburn-Atlantic has initiated coverage on Nvidia shares with a 'buy' rating, reflecting a positive outlook on the company's prospects in the field of accelerated computing, particularly for AI workloads. Other analysts have also maintained positive ratings for Nvidia, with Mizuho (NYSE:MFG) and UBS increasing price targets and anticipating significant growth in the company's Data Center revenue.
InvestingPro Insights
NVIDIA's impressive financial performance aligns with Susquehanna's positive outlook. According to InvestingPro data, NVIDIA's revenue growth stands at a staggering 194.69% over the last twelve months, with a quarterly growth of 122.4% in Q2 2025. This robust growth supports the analyst's expectations of strong results in the upcoming earnings report.
The company's gross profit margin of 75.98% underscores its efficiency in manufacturing, which is crucial given the anticipated demand for H100/H200 and Blackwell products. An InvestingPro Tip highlights NVIDIA's "impressive gross profit margins," indicating the company's ability to maintain profitability even as it scales production to meet increasing demand.
Another InvestingPro Tip notes that NVIDIA is "trading at a low P/E ratio relative to near-term earnings growth," with a current P/E ratio of 68.42. This suggests that despite the recent price target increase, there may still be room for growth in NVIDIA's stock price, especially if the company meets or exceeds expectations in its November earnings report.
For investors seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on NVIDIA, providing a deeper understanding of the company's financial health and market position.
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