Nvidia Stock Soars as Benchmark Raises Price Target on AI Demand

Nvidia stock target boosted at Benchmark as 'demand continues to outstrip supply' By Investing.com

Benchmark analysts lifted their stock price target on Nvidia (NASDAQ:NVDA) on Friday, noting that demand "continues to outstrip supply." The price objective was raised from $135 to $170, implying a potential upside of more than 32% from the last closing price. "We had the opportunity to host Nvidia for a Fireside Chat discussion with investors, where we came away with increasing conviction that the company is well positioned to continue its leadership of the AI industry, with above expected revenue and earnings growth for the foreseeable future," analysts said in a note. They said the most striking takeaway from the chat was Nvidia's confidence that customer demand consistently surpasses its growing supply capabilities. Moreover, the company remains optimistic about its growth prospects despite customers' increasing internal silicon efforts, expecting both systems to fit within expanding capital budgets. Alongside its price target, Benchmark also hiked its Nvidia estimates for fiscal years 2025 and 2026. Other takeaways from the call include that demand for the H100 chip series remains robust, with the H200 and Blackwell models set to ramp up in the second half of the year. Nvidia expects demand to surpass supply well into the next year, analysts highlighted. Although the supply for the H100 has increased, the H200 supply remains constrained. Nvidia began sampling the H200 in the first quarter and is currently ramping up production shipments in the second quarter. "Blackwell is currently in full production, with first revenue expected in Q3, with global availability into customer data centers expected in Q4," analysts said. Blackwell will launch in over 100 OEM and ODM systems, more than double the number at Hopper's launch. Nvidia notes that two Blackwell-based servers can replace about 960 x86 CPU-based servers, reducing power consumption by 85%. Benchmark also indicated that GB200 systems are set to ramp up in Q4, with the revenue mix shifting quickly to GB200 through 2025 due to greater availability from system vendors compared to Hopper.

Nvidia price target raised 25% by Benchmark on demand for AI hardware

Nvidia (NASDAQ:NVDA) had its price target raised more than 25% by the analysts at Benchmark as demand for its high-tech hardware powering the artificial intelligence phenomenon shows no signs of slowing. Benchmark reiterated its Buy rating and boosted its price target to $170 from $135. Nvidia slipped 5.5% on Thursday as tech stocks across the board suffered losses. Still, Nvidia shares have catapulted nearly 160% since Jan. 1. "Benchmark had the opportunity to host Nvidia for a Fireside Chat discussion with investors, where it came away with increasing conviction that the company is well positioned to continue its leadership of the AI industry, with above expected revenue and earnings growth for the foreseeable future," said Benchmark analyst Cody Acree in a note. Despite some of Nvidia's customers working to develop their own silicon, the Jensen Huang-led juggernaut is not worried. Cloud providers such as Google (GOOG)(GOOGL), Microsoft (MSFT) and Amazon (AMZN) are all in various stages of designing their own AI-oriented chips and processors. "Most notable was the company's consistent conviction that its jointly planned customer demand continues to outstrip its increasing ability to fully supply, and that its growth outlook is unfazed by the growing cadence of its customers' internal silicon efforts, with room expected for both systems within customer's expanding capital budgets," Acree added. Nvidia's H200 and Blackwell models remain on track to ramp up during the second half of this year, while demand is expected to outpace supply well into 2025. Revenue from Blackwell is expected to materialize during the third quarter, and be globally available for data centers the following quarter, Benchmark noted.

NVIDIA shares gain as Benchmark boosts target, holds Buy rating By Investing.com

On Friday, NVIDIA Corporation (NASDAQ:NVDA) saw its price target raised to $170.00 from $135.00 by Benchmark, while the firm reaffirmed its Buy rating on the stock. The adjustment follows a recent Fireside Chat with Nvidia that Benchmark hosted for investors. During this event, Benchmark gained confidence in Nvidia's ongoing dominance in the AI sector and its potential for revenue and earnings growth in the coming years. The analyst highlighted Nvidia's sustained belief that its customer demand continues to surpass its supply capabilities, despite increasing production efforts. This demand is not seen as being affected by customers' own internal silicon developments, as there is an expectation for both Nvidia systems and customer-developed silicon to be accommodated within the growing capital budgets of clients. The optimism from Benchmark is based on Nvidia's solid market position and its expected performance. The analyst anticipates that Nvidia's growth trajectory will remain strong, unaffected by the increasing pace at which its customers are developing their own silicon solutions. This view has led to increased estimates for Nvidia's fiscal years 2025 and 2026. Benchmark's raised price target reflects a positive outlook for Nvidia's financial future. The firm's analysis suggests that Nvidia's leadership in the AI industry is likely to continue, bolstered by robust customer demand that exceeds the company's ability to supply fully. In other recent news, major banks including JPMorgan Chase (NYSE:JPM), Citigroup, and Wells Fargo (NYSE:WFC) are preparing to release their earnings reports, anticipated to set the tone for the Q2 earnings season. Analysts expect that JPMorgan Chase, the largest US bank, will reveal a decrease in its quarterly profit due to additional funds allocated to cover potentially defaulting loans. Meanwhile, Intel Corporation (NASDAQ:INTC) aims to reach $1 billion in cumulative software revenue by 2027, following its successful expansion into software services and the acquisition of three software companies. In the AI chip market, Intel is preparing to launch its Gaudi 3 chip to challenge Nvidia's dominance. Intel's involvement in open-source projects such as Triton, supported by AMD (NASDAQ:AMD) and Meta Platforms (NASDAQ:META), signals a strategic move to democratize AI chip development. Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, recently surpassed the trillion-dollar market value mark, driven by robust demand for AI applications. Truist Securities maintained its Buy rating on Nvidia, suggesting that organic sales growth will lead to continued outperformance. Nvidia's second-quarter revenue report exceeded expectations, contributing to a positive market response. However, investors remain watchful for the upcoming US inflation reports and the Q2 earnings season, which will be crucial for assessing the valuations of high-flying megacaps like Nvidia. In light of the recent positive sentiment from Benchmark regarding NVIDIA Corporation (NASDAQ:NVDA), real-time data and insights from InvestingPro further enrich the outlook for the company. NVIDIA's market capitalization stands at a robust $3.13 trillion, reflecting its significant presence in the tech industry. With a high P/E ratio of 74.5, the company showcases a premium valuation, which is supported by an extraordinary revenue growth of over 208% in the last twelve months as of Q1 2025. Additionally, NVIDIA's gross profit margin during the same period was an impressive 75.29%, indicating strong operational efficiency and profitability. InvestingPro Tips highlight NVIDIA's perfect Piotroski Score of 9, which suggests solid financial health, and analysts anticipate sales growth in the current year, reinforcing the company's growth prospects. Moreover, NVIDIA operates with a moderate level of debt and has a track record of maintaining dividend payments for 13 consecutive years, adding to its investment appeal. For those looking to delve deeper into NVIDIA's financials and future outlook, InvestingPro offers additional tips. With the use of coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking further valuable insights on https://www.investing.com/pro/NVDA. There are 20 more InvestingPro Tips available that could provide a comprehensive understanding of NVIDIA's investment potential.