Wells Fargo analyst Aaron Rakers maintained a Buy rating on Nvidia (NVDA – Research Report) today and set a price target of $185.00.
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Aaron Rakers’s rating is based on several key developments in Nvidia’s business. The company has shown strong performance in its Data Center segment, with revenues reaching $39.112 billion, marking a significant year-over-year and quarter-over-quarter increase. This growth is largely attributed to the successful ramp-up of Nvidia’s Blackwell platform, which now accounts for a substantial portion of their compute business.
Additionally, Nvidia’s networking segment has demonstrated impressive momentum, with revenues increasing significantly due to the expansion of their NVLink compute fabric and Spectrum-X. Despite challenges such as the China H20 ban, which resulted in a notable financial charge, Nvidia’s guidance for the upcoming quarter remains optimistic, with expectations of continued revenue growth and stable gross margins. The company’s current trading valuation, combined with these positive business trends, supports the Buy rating, as it suggests potential for further earnings growth and investor sentiment improvement.
According to TipRanks, Rakers is a top 100 analyst with an average return of 21.2% and a 62.58% success rate. Rakers covers the Technology sector, focusing on stocks such as Intel, Nvidia, and Micron.
In another report released today, Bernstein also reiterated a Buy rating on the stock with a $185.00 price target.
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