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NVIDIA stock maintains target with Overweight rating

EditorAhmed Abdulazez Abdulkadir
Published 06/03/2024, 05:52 PM
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NVDA
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On Monday, NVIDIA Corporation (NASDAQ:NVDA) retained its Overweight rating and a price target of $1,250.00, as affirmed by a Wells Fargo analyst. The analyst highlighted several key developments from NVIDIA, including the absence of an Arm-based PC CPU/SoC announcement, which had been anticipated by some following recent collaborations with Mediatek.

The company is placing emphasis on its Spectrum-X Ethernet AI-optimized networking platform, with plans to support 512 radix scaling by 2025 and the introduction of Spectrum-X1600 in 2026, which is expected to handle millions of GPUs. NVIDIA is moving towards an annual release cadence for its Spectrum-X platform.

In addition, NVIDIA has outlined its future hardware roadmap, which includes the Blackwell Ultra with 12H HBM3E memory in 2025, and the Rubin Platform launching in 2026. The Rubin Platform will feature 8H HBM4 memory, a NVLink v6 switch capable of 3600GB/s—a twofold increase—and the Vera CPUs, about which details are yet to be disclosed.

The DRIVE platform, developed by NVIDIA for automotive applications, is slated for launch with Mercedes in 2025 and with Jaguar-Land Rover in 2026. These launches are viewed by the analyst as potential inflection points for NVIDIA's automotive segment, indicating significant developments in the company's trajectory within this industry.

InvestingPro Insights

As NVIDIA Corporation (NASDAQ:NVDA) continues to innovate and expand its technological horizons, real-time data from InvestingPro offers additional insights into the company's financial health and market performance. NVIDIA boasts a remarkable Piotroski Score of 9, indicating strong financial positions in several key areas. Analysts have shown confidence in the company's potential, with sales growth expected in the current year and 37 analysts revising their earnings estimates upwards for the upcoming period.

InvestingPro Data highlights NVIDIA's substantial market capitalization of $2690.0 billion, reflecting its significant presence in the industry. The company's revenue has seen an explosive growth of 208.27% in the last twelve months as of Q1 2025, with a gross profit margin of 75.29%, showcasing its ability to maintain profitability amidst expansion. Additionally, NVIDIA's stock price has returned 178.86% over the past year, demonstrating robust performance in the market.

For readers looking to delve deeper into NVIDIA's financial metrics and gain more strategic insights, InvestingPro offers additional tips, including the company's trading at high earnings and valuation multiples, its volatility, and its ability to cover interest payments with cash flows. With these tools at their disposal, investors can make more informed decisions. To access these insights and more, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Note that there are over 20 additional InvestingPro Tips available for NVIDIA, providing a comprehensive understanding of the company's financial landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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