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UBS raises Nvidia stock price target to $245 on positive earnings outlook Investing.com - UBS raised its price target on Nvidia (NASDAQ:NVDA) to $245.00 from $235.00 while maintaining a Buy rating ahead of the companys upcoming earnings report. The semiconductor giant, currently valued at $4.65 trillion, trades at a P/E ratio of 47.47, with analyst consensus strongly favoring a Buy recommendation at 1.35.
The investment firm expects Nvidias fiscal fourth-quarter revenue to reach approximately $67.5 billion, about $2.5 billion above the companys guidance, according to UBS analyst Timothy Arcuri. This aligns with Nvidias impressive revenue growth of 65.22% over the last twelve months.
UBS projects first-quarter revenue of approximately $76 billion, noting that investor expectations for revenue guidance are in the $74-75 billion range.The firm believes Nvidia will likely exclude China from its guidance, as the country has begun using more domestically produced GPUs, though potential additional revenue from China could boost fourth-quarter results.
UBS expects Nvidia to maintain its 75% gross margin guidance, despite emerging investor questions about margin sustainability given perceived competitive threats from Google/Broadcom TPU, topics the company will likely address during its earnings call and at its upcoming GTC conference in March.
In other recent news, Nvidia plans to invest over NT$40 billion to establish its first overseas headquarters in Taiwan. The Taipei city government has signed a contract with Nvidia, setting land royalties for the project at NT$12.2 billion. Meanwhile, UBS has reiterated its Buy rating on Nvidia stock, maintaining a price target of $235, citing robust Taiwan export data as a positive indicator for Nvidias upcoming financial results. In another development, Apollo Global Management is nearing a $3.4 billion loan deal to purchase Nvidia chips for leasing to Elon Musks xAI, marking its second major investment in this area.
Nvidia has also expressed concerns over new U.S. rules on chip exports to China, which the company warns could be too strict and potentially harm demand. Additionally, Tower Semiconductor announced a collaboration with Nvidia to develop advanced silicon photonics technology for AI data centers, which has led to a significant rise in Tower Semiconductors stock. These recent developments highlight Nvidias strategic investments and collaborations, as well as its navigation of international trade regulations.