Nvidia Stock Remains Strong Buy as Analysts Cite Robust AI Demand

Citi maintains NVIDIA buy rating, steady stock target on strong demand By Investing.com

On Monday, Citi reaffirmed its Buy rating and $150.00 stock price target for NVIDIA Corporation (NASDAQ:NVDA), despite the anticipated delay in the release of the company's Blackwell chips. NVIDIA is expected to experience a three-month setback in its Blackwell GPU units forecast for the January quarter. Citi predicts that the strong demand for artificial intelligence (AI) might lead to increased orders for NVIDIA's H100 and H200 GPUs, which could partially compensate for the projected decline in Blackwell sales. Citi's analysis suggests that the July and October quarter data center sales forecasts for NVIDIA remain largely stable. However, there is an anticipated 15% impact to the January quarter data center sales due to the Blackwell delays. Consequently, Citi has adjusted its fiscal year 2025 (ending January) sales projections downward by 5%. The firm anticipates that sales initially expected in the January quarter will shift to the April quarter. The delay in Blackwell chip availability is also expected to give NVIDIA's competitor, AMD, an opportunity to establish itself as an alternative source in the market. Nevertheless, Citi continues to predict that NVIDIA will maintain a dominant position in the AI GPU market, holding around 90% market share in the long term. Citi has removed NVIDIA from its upside catalyst watch following the Blackwell chip delay. The firm anticipates that the July and October quarter data center sales will not be significantly affected and estimates a roughly 15% impact on January quarter data center sales. This impact is expected to be partially offset by higher demand for the H200 series. For the April quarter, sales are predicted to increase due to the postponed Blackwell sales. Looking forward to the next fiscal year, Citi does not foresee any significant changes to NVIDIA's NVL GB200 volumes. The firm also notes the potential for new U.S. restrictions on B20 AI GPUs being shipped to China in the upcoming year, but it has left its fiscal year 2026 (calendar year 2025) estimates largely unaltered. In other recent news, Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA) faced a challenging July as quarterly earnings reports led to significant decreases in market capitalization. Microsoft's revenues fell short of analyst expectations, contributing to a 6% drop in market cap to $3.1 trillion. Tesla's profit margins shrunk to a five-year low, yet its market cap increased by 17.2% to $740.1 billion due to positive future growth outlooks from Morgan Stanley (NYSE:MS). On the other hand, Advanced Micro Devices (NASDAQ:AMD) reported robust Q2 results, with revenues of $5.835 billion surpassing Street consensus by $110 million. Benchmark reiterated a Buy rating for the company, highlighting the solid performance of its Data Center EPYC CPUs and Instinct AI-Accelerator GPUs. AMD's Q2 revenue also saw a 9% year-over-year increase, largely driven by its data center segment, which saw revenue growth of 115% to a record $2.8 billion. Meanwhile, Apple (NASDAQ:AAPL)'s market cap rose by 5.4% to $3.4 trillion, driven by investor enthusiasm for its new AI initiative, Apple Intelligence. Nvidia, despite a 5.2% decrease in market cap to $2.8 trillion, experienced a record single-day gain in market value after Microsoft and AMD reignited interest in the AI market. These recent developments demonstrate the dynamic nature of the tech industry, with AI advancements being a key factor in investor decisions. As NVIDIA faces delays with its Blackwell chips, its competitor AMD is spotlighted in the semiconductor industry. According to InvestingPro data, AMD boasts a robust market capitalization of $214.45 billion, underscoring its considerable presence in the market. Despite a high P/E ratio of 159.38, which indicates a significant earnings multiple, AMD's revenue growth remains positive, with a 6.4% increase over the last twelve months as of Q2 2024. This growth is further exemplified by an 8.88% quarterly revenue growth in Q2 2024. InvestingPro Tips reveal that AMD is expected to see net income growth this year, positioning the company for potential profitability. Furthermore, with 24 analysts revising their earnings downwards, the market may be adopting a cautious stance on AMD's upcoming performance. Yet, AMD remains a prominent player in the Semiconductors & Semiconductor Equipment industry, with liquid assets surpassing short-term obligations, suggesting financial resilience. For investors seeking a deeper dive into AMD's financial health and market position, additional InvestingPro Tips provide a comprehensive analysis. In total, there are 15 more tips available on AMD, offering insights into aspects such as stock volatility, debt levels, and valuation multiples. These tips can be accessed through the InvestingPro platform, which provides detailed financial metrics and expert analysis for informed decision-making.

Goldman Sachs maintains Buy rating on NVIDIA stock By Investing.com

On Monday, Goldman Sachs (NYSE:GS) reiterated their Conviction Buy rating on NVIDIA (NASDAQ:NVDA) with a steady price target of $135.00. Despite reports of potential delays in the release of NVIDIA's next-generation products due to design flaws, the firm remains optimistic about the company's long-term prospects. The weekend brought news that NVIDIA's upcoming products built on the Blackwell architecture might face a delay of at least three months. The reported design issues could lead to some fluctuations in NVIDIA's short-term performance, particularly affecting growth in the coming October and January quarters. A sharper increase in product rollouts is anticipated thereafter. Goldman Sachs expects these developments to have minimal or no effect on NVIDIA's earnings for the calendar year 2025. The firm's conviction in NVIDIA's enduring competitive edge in the market has not wavered. The $135 price target suggests a 26% potential upside, reflecting confidence in the company's future performance. The analyst's comments underscore a belief that the reported delay, if confirmed, is unlikely to undermine NVIDIA's market position or financial outcomes significantly in the long run. The recommendation to maintain a Buy rating on NVIDIA's stock, which also features on the Americas Conviction List, is based on this long-term view. Investors are keeping a close eye on NVIDIA as it navigates the reported challenges with its Blackwell architecture. The company's ability to address these issues and execute its product roadmap will be critical in maintaining its competitive stance in the technology sector. In other recent news, Nvidia Corporation (NASDAQ:NVDA) is experiencing multiple challenges. The company is facing a delay in the launch of its new artificial intelligence (AI) chips due to design flaws, which could push the release back by at least three months. This delay could have significant implications for major customers like Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL) Inc.'s Google (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT), which have placed orders worth tens of billions of dollars for these chips. Additionally, Nvidia is under scrutiny by the U.S. Department of Justice for potential abuse of its market position in the AI chip industry. The investigation was initiated following allegations from rival chipmakers suggesting that Nvidia may have unfairly leveraged its market position. InvestingPro Insights With Goldman Sachs' strong conviction in NVIDIA's potential, investors may find additional context in the latest metrics and analysis from InvestingPro. NVIDIA boasts a perfect Piotroski Score of 9, indicating a healthy financial state, which may reassure investors about the company's ability to navigate short-term challenges. Analysts are also anticipating sales growth in the current year, suggesting that NVIDIA's fundamentals remain robust despite potential product delays. InvestingPro Data highlights NVIDIA's impressive revenue growth, with a staggering 208.27% increase over the last twelve months as of Q1 2025. The company's gross profit margin stands at a solid 75.29%, underlining its efficiency and profitability. However, with a P/E ratio of 61.24, NVIDIA is trading at a high earnings multiple, which could indicate a premium valuation. Despite recent volatility, with a 1-month price total return of -14.75%, the stock has shown resilience over a longer period, with a 6-month price total return of 54.74%. For investors seeking a deeper dive, InvestingPro offers additional tips on NVIDIA, including insights into the company's dividend consistency, debt levels, and profitability predictions for this year. To explore all 21 InvestingPro Tips for NVIDIA, including valuation multiples and stock price movements, visit InvestingPro.