Truist Securities Boosts Nvidia’s Price Target to $1177 with Strong Buy Rating Intact

Truist Securities, a financial services firm, recently increased Nvidia’s price target to $1177, while maintaining a strong buy rating on the stock. This decision follows Nvidia’s fourth-quarter earnings, which impressed analyst William Stein enough to warrant sustained confidence in the company’s momentum.

Stein emphasized Nvidia’s dominant position in parallel compute and artificial intelligence (AI), attributing it to the company’s culture of innovation, robust ecosystem, and substantial investments in software, services, and models.

Nvidia’s Q4 2024 results surpassed expectations, with an earnings per share (EPS) of $5.16, exceeding the Zacks Consensus Estimate by 13.4%. Additionally, the quarter’s revenue stood at $22.1 billion, beating estimates by 8.9%. The gross margin saw notable improvement, reaching 76.7% compared to 66.1% in Q4 2023. Operating expenses for the quarter were $2.21 billion, higher than the previous year’s $1.78 billion.

For fiscal year 2024, Nvidia reported an EPS of $12.96, marking a significant increase of 288% from the previous year’s $3.34. Revenue for the year reached $60.92 billion, up 125.9% from FY 2023. The gross margin also improved to 73.8%, compared to 59.2% in FY 2023. Operating expenses for the year were $7.83 billion, slightly higher than the previous year’s $6.93 billion.

Looking ahead, Nvidia’s management provided guidance for Q1 2025, anticipating revenue between $23.52 billion and $24.48 billion. They also projected a gross margin of 77%, with operating expenses estimated at $2.5 billion. CEO Jensen Huang expressed optimism about future product cycles, emphasizing their potential to drive innovation across industries such as gaming, data centers, and automotive.

Truist Securities’ upgrade of Nvidia’s price target to $1177 underscores the firm’s confidence in the company’s sustained growth and profitability. Coupled with a strong buy rating and positive outlook, Nvidia’s stock is poised to attract investors seeking long-term growth opportunities.

In summary, Truist Securities’ decision to raise Nvidia’s price target and reaffirm the buy rating reflects confidence in the company’s leadership in parallel compute and AI, impressive financial performance, and promising future growth prospects.

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