Loop Capital recently reiterated its “Buy” rating on NVIDIA, with a price target of $175. The firm highlighted that while NVIDIA’s upcoming Blackwell chip is delayed—potentially by around 120 days instead of the previously estimated 90 days—this delay might not significantly impact the company’s overall performance.
One reason for this optimism is that the yields for NVIDIA’s current Hopper chips, manufactured by TSMC, are continuing to improve. Additionally, increased production of Hopper chips through the fall may compensate for the delay in Blackwell’s launch.
Loop Capital also noted that while there might be a slight reduction in average selling prices (ASP) due to the increased production of Hopper chips in the first half of the calendar year 2025, there remains significant potential for NVIDIA’s earnings to exceed market expectations.
The firm projects that NVIDIA could generate an earnings per share (EPS) of $5.00 to $6.00 in the calendar year 2025 (fiscal year 2026), which supports its valuation of 29x to 35x EPS, leading to the $175 price target.
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