On Monday, Susquehanna maintained a positive stance on NVIDIA Corporation (NASDAQ:NVDA) shares, a leading technology company known for its graphics processing units (GPUs). The firm raised its price target to $1,450.00, a significant increase from the previous target of $1,200.00.
The adjustment in the price target reflects confidence in NVIDIA's ability to capitalize on the growing demand for artificial intelligence (AI) technologies. Susquehanna's revised price target is based on a price-to-earnings (P/E) multiple of approximately 46.5 times the firm's calendar year 2025 adjusted earnings per share (EPS) estimate, which takes into account the company's net operating profit after taxes (NOPAT).
The analyst from Susquehanna highlighted that the new P/E multiple represents an increase from the earlier multiple of around 38.5 times. This change underscores the firm's recognition of NVIDIA's successful execution in the AI sector, which is expected to continue expanding.
NVIDIA has been identified as well positioned in the market, with the potential to benefit from the thriving end markets for its products and services. The P/E multiple set by Susquehanna is notably higher than the group median of approximately 28.5 times, but it is deemed justified given NVIDIA's strategic advantage in the AI industry.
The price target uplift comes as NVIDIA continues to demonstrate its capacity to navigate the opportunities presented by the AI market. The company's focus on innovation and development in this area is anticipated to drive its financial performance and shareholder value.
In other recent news, NVIDIA has seen a significant adjustment in its share price targets following a 10-for-1 stock split. Cantor Fitzgerald revised its price target to $140, while Barclays set a new target of $145, both firms maintaining an Overweight rating on the stock.
This recalibration reflects the altered share count and does not change the net income projections or the investment thesis for NVIDIA. Barclays also revised its revenue expectations for NVIDIA for the calendar year 2025 to $157.1 billion, anticipating a significant increase in AI product revenue.
In regulatory news, the US Department of Justice and the Federal Trade Commission are scrutinizing the AI industry, focusing on NVIDIA, OpenAI, and Microsoft (NASDAQ:MSFT). This could potentially lead to investigations into these companies' business practices. In addition, investors have placed significant short bets against NVIDIA, reaching approximately $34 billion, according to S3 Partners.
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.
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.
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