JPMorgan doubled down on its upbeat stance for NVIDIA Corporation (NASDAQ: NVDA), keeping its Overweight rating and $170.00 price target intact. The vote of confidence comes after the U.S.-based chipmaker reported fourth-quarter results that topped estimates and delivered better-than-expected revenue guidance.
NVIDIA forecasts a 9% quarter-over-quarter revenue increase for the first quarter, estimating $43 billion. That figure edges out the consensus estimate of $42 billion, and JPMorgan analysts see it as a sign of strength. They attribute this optimistic outlook to robust spending from customers diving into artificial intelligence and accelerated computing initiatives, including training and inference applications.
The company’s financials back up the rosy outlook. NVIDIA posted an eye-popping 152.44% year-over-year revenue increase, paired with an industry-leading gross profit margin of 75.86%.
JPMorgan also called out NVIDIA’s Blackwell datacenter platform as a key contributor to the positive outlook. The platform is seeing a strong ramp-up in production and deployment, strengthening the chipmaker’s position in the fast-growing data center computing space. This development aligns with the company’s knack for meeting the escalating needs of its customer base.
NVIDIA’s recent results and forward-looking guidance cement its leadership in high-demand sectors like AI and datacenter computing. JPMorgan’s analysis suggests the company is capitalizing on the growing appetite for advanced computing solutions, a trend that shows no signs of slowing.
The Overweight rating reflects JPMorgan’s view that NVIDIA (NASDAQ: NVDA) stock offers better value than the average stock in its coverage universe. Currently trading at a price-to-earnings ratio of 50.63, NVIDIA enjoys a strong analyst consensus rating of 1.34, which translates to a Strong Buy. Analyst price targets for the stock range from $120 to $220. The $170.00 target set by JPMorgan reflects its projected value based on earnings forecasts and valuation multiples.
