On Tuesday, Truist Securities adjusted its financial outlook for NVIDIA (NASDAQ:NVDA), increasing the stock's price target to $145.00 from $140.00, while reiterating a Buy rating. The adjustment reflects a positive assessment of NVIDIA's business trends and the broader AI market influences.
"Fundamental and sentimental factors appear to be still improving," said Truist's analysts.
Conversations with component buyers and sellers suggest that business trends for NVIDIA are showing signs of improvement as the company approaches its second calendar quarter (CQ2) in July.
Truist's decision to revise the price target upwards is also informed by the growing investments and adoption in the artificial intelligence sector. Public data points to a significant uptick in AI integration across various industries, which is expected to bolster NVIDIA's business prospects.
As a result of the optimistic industry outlook, Truist has modestly raised its earnings per share (EPS) estimates for NVIDIA for the calendar year 2025 to $3.61, up from the previous estimate of $3.39. The new price target of $145 is based on a consistent 40x price-to-earnings (P/E) ratio, which includes a 5x discount compared to high-growth semiconductor peers.
In other recent news, Morgan Stanley has maintained its Overweight rating on Nvidia (NASDAQ:NVDA)'s shares, expressing confidence in the company's ability to navigate through recent and upcoming challenges. Similarly, analysts from firms like Citi and Melius have maintained a Buy rating on Nvidia's stock.
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