On Monday, Cantor Fitzgerald adjusted its price target for NVIDIA (NASDAQ:NVDA) shares to $140 from the previous target of $1,400, while maintaining an Overweight rating on the stock.
This change follows NVIDIA's 10-for-1 stock split, which became effective after the market closed on Friday. The adjustment by the firm is to align with the new number of shares available post-split.
The firm's analyst stated that the recalibration of the price target is strictly a reflection of the altered share count and does not alter the net income projections or the investment thesis for NVIDIA.
They emphasized that the fundamentals of their analysis remain unchanged, and the adjustment in earnings per share (EPS) projections for calendar years 2024 and 2025 to $2.70 and $3.50, respectively, is purely a result of the stock split. Prior to the split, the EPS estimates stood at $27.00 and $35.00.
The firm continues to hold a positive long-term outlook for NVIDIA's earnings potential, indicating an anticipated EPS of close to $4.00 in calendar year 2025, adjusted down from the pre-split estimate of $40.00. The analyst's comments underscore a sustained confidence in the growth trajectory of NVIDIA's earnings.
NVIDIA, identified as the firm's top pick within the semiconductor industry, has undergone a significant revaluation of its stock price target to mirror the new share structure post-split. The firm's endorsement of an Overweight rating suggests continued optimism about NVIDIA's performance in the market.
The adjustment to NVIDIA's price target is a direct consequence of the stock split and is a technical response to the increase in share count. The firm has reiterated its Overweight rating, signaling its belief that NVIDIA will outperform the general stock market or its sector in the foreseeable future.
In other recent news, NVIDIA Corporation (NASDAQ:NVDA) has undergone a price target adjustment by Barclays following its 10-1 stock split. The new target is set at $145, with Barclays maintaining an Overweight rating on the stock. The firm has also revised its revenue expectations for NVIDIA for the calendar year 2025/fiscal year 2026 to $157.1 billion, anticipating a significant increase in AI product revenue.
The US Department of Justice and the Federal Trade Commission are scrutinizing the AI industry, focusing on NVIDIA, OpenAI, and Microsoft (NASDAQ:MSFT). This scrutiny could potentially lead to investigations into these businesses' practices.
Investors have placed significant short bets against NVIDIA, reaching approximately $34 billion, according to S3 Partners. Furthermore, NVIDIA, along with other tech giants, has significantly influenced the S&P 500's total return of over 12% for the year, with NVIDIA's increase contributing about a third of the index's gain.
Lastly, the US Justice Department and the FTC have agreed to launch antitrust investigations into the activities of Microsoft, OpenAI, and NVIDIA in the AI sector, highlighting the increased regulatory attention on these companies in the rapidly growing field of AI.
InvestingPro Insights
Amidst the recalibration of NVIDIA's (NASDAQ:NVDA) stock price target following its recent split, real-time data and insights from InvestingPro paint an intriguing picture for investors. NVIDIA boasts a robust Piotroski Score of 9, reflecting strong financial health, and analysts are forecasting sales growth for the current year, which underscores the company's sustained growth potential. Additionally, the stock has seen 37 analysts revise their earnings estimates upwards for the upcoming period, indicating a bullish sentiment in the financial community.
InvestingPro data highlights NVIDIA's substantial market capitalization of $2970.0 billion USD, with a high P/E ratio of 70.61, suggesting investors are willing to pay a premium for anticipated growth. Furthermore, the company's impressive revenue growth of 208.27% over the last twelve months as of Q1 2025 points to its significant market expansion. For investors seeking additional insights, there are 23 more InvestingPro Tips available, providing a comprehensive analysis of NVIDIA's financial health and market position. To access these valuable tips and metrics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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