NVIDIA (NVDA) PT Raised to $165 at BofA Securities

BofA Securities analyst Vivek Arya raised the price target on NVIDIA (NASDAQ: NVDA) to $165.00 (from $150.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating on Nvidia (NVDA), a top sector pick, raising FY25/26E (roughly CY24/25E) pf-EPS by 9%/9% to $2.81/$3.90, and raising our PO to $165 from $150 on an unchanged 42x CY25E PE. It was a solid Q2 with sales of $30bn vs. $28.6bn consensus, however the stock is likely to be volatile as the Q3 sales outlook of $32.5bn is only modestly ahead of $31.9bn consensus, and below some more bullish $33-$35bn expectations, likely on Blackwell ramp pushed out by a quarter. We also flag rising Blackwell ramp costs n-t, with GM likely to be closer to 73% in Q4 vs 75% in Q3E. Despite the quarterly noise, we continue to believe in NVDA's unique growth opportunity, execution and dominant 80%+ share as generative AI deployments are still in their first 1-1.5yr of what is at least a 3-4 year upfront investment cycle. Importantly, next-gen AI models will require 10x-20x more compute power to train (Blackwell only 3x-4x more compute over Hopper). AI deployment remains a mission-critical imperative for global cloud/enterprise customers, with NVDA providing the best turnkey model. Second, we highlight compelling valuation at 30-35x CY25E PE or <1x PE to growth (PEG) ratio relative to 40%+ EPS growth expectations, a standout in not just semis but also in large-cap tech/growth."

You May Also Be Interested In

• Groq raises $650m to expand AI inference cloud operations
• Freedom Capital Starts Flutter Entertainment (FLUT) at Hold
• Qualcomm (QCOM) PT Raised to $195 at BofA Securities