Stifel maintains NVIDIA stock Buy rating, $180 target

Stifel analysts reaffirmed their Buy rating and $180 price target for NVIDIA (NVDA) ahead of its Q1 2025 earnings report on May 28, anticipating results and outlooks in line with expectations despite H20 restrictions. Supply chain insights suggest a second-half acceleration driven by expansion in the UAE and Saudi Arabia, supported by U.S. policy changes, while investors will likely focus on hyperscaler demand, China export impacts, and potential margin pressures from the GB200/300 series ramps. Separately, Navitas Semiconductor announced a collaboration with NVIDIA to develop an 800V HVDC architecture for AI data centers, aiming to improve power efficiency and reduce costs.

Analysis

Stifel analysts have reaffirmed their Buy rating and a $180 price target for NVIDIA Corporation (NVDA) ahead of its Q1 2025 earnings report scheduled for May 28, 2025, with the stock currently trading at $131.29 against a broader analyst target range of $100 to $220. Stifel anticipates NVIDIA's results and outlook will align with predictions, despite acknowledging adverse revenue impacts from recently disclosed H20 restrictions. This optimism is partly fueled by supply chain discussions indicating a significant acceleration in the second half of the year, driven by NVIDIA's expansion in the UAE and Saudi Arabia and supported by changes in U.S. policy. The company's financial health is underscored by a perfect Piotroski Score of 9, impressive 114.2% revenue growth over the last twelve months, and current revenue of $130.5 billion. Key areas of investor focus in the near term will likely revolve around hyperscaler demand sustainability, the potential further impact of China export restrictions, and possible margin pressures from the early ramps of the GB200/300 series. Susquehanna also maintains a Positive rating and a $180 price target, despite noting a $1 billion revenue impact from China's H20 restrictions, and has adjusted NVIDIA’s FY26 revenue forecast upwards due to strong AI demand and gaming sector growth. Further bolstering NVIDIA's technological leadership, Navitas Semiconductor has partnered with NVIDIA to develop an 800V HVDC architecture aimed at improving AI data center power efficiency by up to 5%. Stifel concludes that NVIDIA's stock is attractively valued given its dominant role in shaping global AI infrastructure.

Key Decisions for Investors

• Investors should closely monitor NVIDIA's Q1 2025 earnings report on May 28, 2025, for management’s commentary on hyperscaler demand, the full impact of H20 restrictions, and margin outlook concerning the new GB200/300 series.
• Evaluate NVIDIA's current valuation in the context of its robust 114.2% LTM revenue growth, exceptional Piotroski Score of 9, and consistent analyst confidence, despite acknowledged short-term headwinds like China export controls.
• Consider the strategic implications of partnerships, such as the one with Navitas Semiconductor to enhance data center efficiency, as these reflect NVIDIA's proactive measures to sustain its leadership and address evolving AI infrastructure requirements.