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."
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Shares of NVIDIA closed at $130.28 yesterday.