Truist: 'NVIDIA (NVDA) Is Still the AI Leader and the One to Own'

Truist Securities analyst William Stein reiterated a Buy rating and $204.00 price target on NVIDIA (NASDAQ: NVDA).

The analyst commented: "Heading into CQ4 (Jan) results, NVDA is still the AI leader and the one to own; Lots of noise, but the data we trust most is encouraging. NVDA reports its CQ4 (Jan.) result on Weds 2/26. We expect NVDA will (1) deliver upside vs. consensus in its CQ4 (Jan) results & CQ1 (Apr) guidance, (2) highlight a narrowing of SKUs around the NVL72 configuration, (3) express confidence in CY25 owing to very robust backlog, and (4) focus on the next drivers of growth after LLMs: data processing, and physical AI. Our CY26 EPS is $5.84; PT is $204 based on 35x P/E (15x discount to hi-growth semis).

We expect NVDA will deliver modest upside relative to consensus for CQ4, and will guide CQ1 ~inline with sellside consensus of $42B. Inline with our industry contact feedback, we expect the company to discuss a consolidation of Blackwell SKUs around the NVL72 system. The capex datapoints bode well for NVDA's backlog and medium-term outlook. Looking further into the future, we expect management to discuss emerging AI models & techniques including data processing and physical AI (robotics). We expect this will be a positive catalyst for the stock...and the next one will be GTC in March."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $130.28 yesterday.

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