ubs maintains buy rating and $175 target on nvidia stock

On Tuesday, UBS analysts reiterated their Buy rating for NVIDIA stock (NASDAQ: NVDA), maintaining a price target of $175. With a current market capitalization of $3.4 trillion and trading at $139.84, NVIDIA has demonstrated strong momentum, gaining nearly 20% over the past year. The analysts highlighted the company’s potential in the data center sector, emphasizing NVIDIA’s visibility into substantial AI infrastructure projects.

The analysts noted that NVIDIA has insight into "tens of gigawatts" of AI infrastructure projects in the near future. They estimate that even a conservative pipeline of 20 gigawatts could present a revenue opportunity of at least $1 trillion, based on NVIDIA’s projected revenue range of $40-50 billion per gigawatt. According to InvestingPro data, NVIDIA already boasts an impressive 86% revenue growth and maintains an "EXCELLENT" financial health score, suggesting strong capability to execute on these opportunities.

While NVIDIA did not specify a timeline for these projects, UBS analysts believe they could be deployed over a 2-3 year period. This timeframe suggests the company might have visibility to approximately $400 billion annually in data center revenue, which would double their current estimate for 2026. With current revenue of $148.5 billion and a robust gross profit margin of 70%, NVIDIA appears well-positioned to capitalize on this growth opportunity. Discover 18 additional key insights about NVIDIA with an InvestingPro subscription.

The analysts’ outlook is based on NVIDIA’s recent earnings call, where the company discussed its pipeline and potential for growth. This positive assessment underscores NVIDIA’s strategic positioning in the expanding AI and data center markets.

NVIDIA’s stock performance continues to attract attention, with UBS analysts reaffirming their confidence in the company’s growth prospects, especially in the AI infrastructure domain.

In other recent news, Nvidia (NASDAQ:NVDA) reported a significant 64% quarter-over-quarter growth in its networking segment, reaching $5 billion in the first quarter. This growth was largely driven by its NVLink solutions and Spectrum-X portfolio, which saw substantial sales and new customer traction. UBS maintained its Buy rating on Nvidia with a $175 target, highlighting improved gross margin commentary and bullish product shipment updates. The firm noted that Nvidia’s recent results and guidance met expectations, with potential revenue growth hindered by the China ban. Citi also reiterated a Buy rating, focusing on Nvidia’s strategic emphasis on AI networking and its efforts to optimize compute and storage. Additionally, analysts at Bank of America highlighted the potential for robust growth in the AI infrastructure sector, with significant investments anticipated in the coming years. The ongoing US-China trade tensions and their impact on the semiconductor industry remain a topic of discussion, as Nvidia is among the companies affected. These developments come amid broader market concerns related to global trade conflicts and geopolitical uncertainties.

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