Key Takeaways
Nvidia ( NVDA ) shares gave up early gains Thursday after the chipmaker reported fourth-quarter earnings that topped Street estimates. Investors may have expected more from the AI darling.
Shares were down about 3% at $127 in intraday trading. The stock has had a tough start to 2025, with shares down about 5% for the year so far, after nearly tripling in value in 2024.
Better-than-expected results have become "routine" for Nvidia, Morgan Stanley analysts said, with expectations climbing ahead of the company's report . However, "everything improves from here," the analysts said, and raised their price target to $162 from $152, pointing to Nvidia's strong outlook and "language around 'amazing' levels of Blackwell demand."
Bank of America analysts called the stock a “top pick on AI dominance” and raised their price target to $200 from $190. Nvidia’s data center segment, which delivered record quarterly revenue, “potentially faces strong, long-term demand dynamics,” the analysts added.
Several of Nvidia’s Big Tech buyers, including Microsoft ( MSFT ), Meta ( META ), Amazon ( AMZN ) and Google parent Alphabet ( GOOGL ), recently announced plans to raise their capital expenditures to fuel their AI ambitions.
Wedbush analysis said the results showed “few (if any) blemishes” with “seemingly only good news ahead.” Nvidia’s annual GPU Technology Conference is in March, and CEO Jensen Huang told analysts on the company’s earnings call to expect “ exciting things to come ” including what’s next after its Blackwell line of chips. Wedbush maintained its price target of $175 and “outperform” rating.
Nvidia reported $11 billion in quarterly revenue from Blackwell, which CFO Colette Kress said was the company’s fastest-ever product ramp, according to an earnings call transcript provided by AlphaSense. Going forward, Jefferies analysts said “the supply chain should continue to improve, and we see no signs of demand issues.” The analyst posted a price target of $185.
Despite recent losses, Nvidia shares have added nearly two-thirds of their value over the past 12 months.
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