UBS reiterated its "buy" rating on Nvidia on Monday and raised its target price from $120 to $150. UBS pointed out that recent surveys show "very strong" demand for its upcoming Blackwell series of products. UBS analyst Timothy Arcuri said that based on recent surveys of Blackwell, Nvidia's EPS could be around $5 by 2025 as orders for NVL72 and NVL36, large-scale processors, have increased significantly compared to two months ago due to budget growth. Additionally, Arcuri said investors may see a return as the recent "wall of worry" has subsided and the market's recent overheated sentiment has dissipated.$NVIDIA (NVDA.US)$Morgan Stanley is also bullish on Nvidia, as strong chip demand driven by the AI boom, Nvidia, which is at the heart of the AI boom, is still seen as a strong technology stock by analysts. Morgan Stanley has significantly increased its performance expectations and target stock price of Nvidia as the institution now thinks that, driven by unparalleled demand, at least this year's performance data for Nvidia will be "strong". After conducting research, Morgan Stanley raised Nvidia's 12-month target stock price significantly from $116 to $144 and maintained its "hold" rating on the stock. Overall, Morgan Stanley continues to be optimistic about the rise of Nvidia's stock price, believing that its performance will be far stronger than that of the large cap. However, it will still take time to come out of the recent correction.
After conducting research, Morgan Stanley analyst Moore now believes that, according to GAAP accounting standards, Nvidia's EPS could reach $3.34, and adjusted EPS could reach $3.53, far higher than Morgan Stanley's previous expectations of $2.91 and $3.10.
Bank of America also released a report stating that the relative weighting of the semiconductor industry has fallen by 9% MoM to 0.99x, and has continued to decline from 1.16x in June 2023, below the peak of 1.36x in March 2017. Despite the decline in relative weighting, Nvidia still has the widest holder base, with 68% of funds holding the stock. This ratio is still at a historical high and has increased by 10 basis points MoM, indicating that fund managers are still incorporating the semiconductor giant into their portfolios.
Nvidia was rarely downgraded. Analysts say the upside is exhausted. In comparison, New Street Research has rarely downgraded Nvidia. Pierre Ferragu, an analyst at New Street Research, said Nvidia's rapid rise since early last year has finally exhausted its potential for further growth, downgrading the stock from "buy" to "neutral". Ferragu wrote that additional upside potential "will only be realized in a bullish market situation, and the outlook for 2025 is likely to increase significantly, but it is not yet clear whether this will happen."
Morgan Stanley stock analyst Joseph Moore wrote in a recent research report that the recent chip industry chain survey from China Taiwan is enough to maintain the organization's strong confidence in Nvidia's recent performance data, and the catalyst path for demand is still 'strong'.
Morgan Stanley's research data shows that Nvidia's AI GPU demand prospects are still very strong, H100 demand is still amazing, H200 growth visibility is gradually increasing, and Chinese companies have strong demand for Nvidia H20.
For a company that has become the biggest beneficiary of the AI boom, a downgrade by analysts is relatively rare. Nearly 90% of analysts tracked by Bloomberg suggest buying the stock. However, valuation is often seen as a concern. By measuring future EPS of Nvidia over the following 12 months, its PE ratio is more than 22 times, making it the most expensive stock in the S&P 500 index. New Street set a one-year target price of $135 for Nvidia, while the stock closed at $125.82 last Friday.
Order: Hold; Institutions: Semiconductors; Analyst: Bank of America; EPS: -; Target Price: -; Stocks: -; UBS Group is morgan stanley: No; Fund: -; Nvidia: Nvidia; Buy: -; Bullish: -; S&P 500 Index: S&P 500 Index; Shareholding: -; Bank of America: Bank of America; Industry: Semiconductors; Semiconductors: Semiconductors; Technology: Technology; PE: pe; Large Cap: large cap; AI Chip: ai chip; AI: ai; After conducting research, Bank of America analyst Richardson now predicts that the earnings of semiconductor companies are expected to decline at least by 20% in 2022. The analyst also said that the current high semiconductor prices and high supply chain costs reflect not only high demand from emerging technologies, but also semiconductor equipment and packaging shortages, as well as productivity constraints on foundries. In the long term, Bank of America still maintains a positive view of the semiconductor and tech industries.
Nvidia was rarely downgraded. Analysts say the upside is exhausted.
In comparison, New Street Research has rarely downgraded Nvidia. Pierre Ferragu, an analyst at New Street Research, said Nvidia's rapid rise since early last year has finally exhausted its potential for further growth, downgrading the stock from "buy" to "neutral". Ferragu wrote that additional upside potential "will only be realized in a bullish market situation, and the outlook for 2025 is likely to increase significantly, but it is not yet clear whether this will happen."
He added that while the quality of the franchise remains intact, Nvidia faces the risk of a downgrade if current prospects persist.
Nvidia rose nearly 240% in 2023 and soared 154% this year, making it the second-best performer among the components of the S&P 500 Index this year, behind only Super Micro Computer (SMCI.US), which is also a favorite of artificial intelligence investors. The hot trend has boosted Nvidia's market cap by nearly $1.9 trillion and briefly made it the world's largest company by market value.
For a company that has become the biggest beneficiary of the AI boom, a downgrade by analysts is relatively rare. Nearly 90% of analysts tracked by Bloomberg suggest buying the stock. However, valuation is often seen as a concern.
By measuring future EPS of Nvidia over the following 12 months, its PE ratio is more than 22 times, making it the most expensive stock in the S&P 500 index. New Street set a one-year target price of $135 for Nvidia, while the stock closed at $125.82 last Friday.
Edited by Jeffrey