Latest news with #Compute
Business Insider
5 days ago
- Business
- Business Insider
Nvidia Stock Nears Peak Again After 50% Rally — Will It Keep Rising?
Nvidia (NVDA) stock is back in the spotlight. The stock surged 2.6% on Tuesday to close at $147.90, its highest level since January, and is now less than 1% below their all-time high of $149.43. After a 50% rally from its April low of just over $96, and with strong demand trends in AI and new analyst upgrades, many believe NVDA could break out to new highs in the days ahead. Confident Investing Starts Here: The sharp rebound follows a rough start to the year, when Nvidia shares tumbled over 35% amid U.S.-China tensions, chip export bans, and rising Chinese competition. But with momentum back and confidence returning, Nvidia's sharp turnaround is grabbing Wall Street's attention once again. What's Driving the Comeback? A major turning point came with Nvidia's first-quarter results on May 28. Despite losing billions in revenue from a U.S. export ban on its advanced chips to China, Nvidia still beat analyst estimates. Revenue remained strong, helped by demand from other regions and robust orders for AI infrastructure. At the same time, Nvidia signed major supply deals with Saudi Arabia and the UAE, part of a growing trend of 'sovereign AI' as countries invest in their own data centers and computing stacks. These wins helped restore confidence in the company's long-term growth story. Since the earnings report, Nvidia stock has jumped more than 9%, well ahead of the S&P 500's (SPX) 3.5% gain over the same period. Wall Street Analysts See More Upside Ahead Wall Street analysts remain bullish about Nvidia's growth prospects. They believe that Nvidia's strength across the board, from its H100 and new Blackwell chips to its CUDA software, gives it a big lead in the AI market. Recently, Barclays' five-star-rated analyst Thomas O'Malley reiterated his Buy rating on NVDA stock and increased his price target from $170 to $200 per share. The new target price signals an impressive 35% upside from the current levels. O'Malley believes Nvidia will beat expectations in the second half of the year, thanks to stronger sales from its Compute division. He sees $2 billion more in revenue than expected for the July quarter alone. He forecasts $42 billion in Compute revenue for Q3 and $48 billion for Q4, both higher than Wall Street's estimates. Overall, the analyst believes that growing chip production, rising system sales, and strong demand should help Nvidia boost its profits in the second half of the year. What Is Nvidia's Stock Forecast? According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell assigned in the last three months. At $173.19, the Nvidia average share price target implies a 17.10% upside potential.
Yahoo
19-06-2025
- Business
- Yahoo
NVDA: Barclays Sees $200 Nvidia Surge Ahead as Chip Demand Soars
June 18- Barclays raised its price target on Nvidia (NASDAQ:NVDA) to $200 from $170, projecting stronger-than-expected growth for the chipmaker in the second half of 2025. The updated forecast reflects a potential 38% gain from Nvidia's June 16 closing price of $144.69. Barclays cited fresh supply chain checks that suggest about $2 billion in revenue upside for July, prompting the firm to boost its full-year Compute revenue estimate to $37 billion from $35.6 billion. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Although Blackwell chip production reached only 30,000 wafers per month in June, below the bank's earlier 40,000-wafer estimate, utilization rates remain solid. Barclays also highlighted continued progress on Blackwell Ultra, which is expected to enter mass production in the third quarter. System sales are picking up, projected to make up 25% of revenue in July and rising to nearly half by October. The analysts said higher volumes and the Ultra rollout should lift gross margins in the second half. Compute revenue projections were revised up for Q3 and Q4, to $42 billion and $48 billion, respectively. The new $200 target is based on a 29-times multiple of Barclays' updated 2026 non-GAAP EPS estimate of $6.86. The firm kept its "Overweight" rating on Nvidia, while maintaining a Neutral stance on the broader U.S. semiconductor sector. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
