Nvidia (NASDAQ: NVDA) Stock Analysis and Price Prediction by Itau BBA Analysts
In the world of tech stocks, Nvidia continues to stand out as a top pick for investors. Itau BBA analysts have recently conducted a thorough evaluation of Nvidia's prospects and have come up with a fair price range for the company's shares.
Key Factors Impacting Nvidia:
- Delays in the Blackwell chip
- Concerns about capital expenditure overbuild by major tech companies
Despite these challenges, Itau BBA is optimistic about Nvidia's earnings performance for the next two to three quarters. They believe that the Blackwell delay could actually benefit short-term numbers, especially with the H200 chip performing well.
Potential Risks:
- Nvidia's implied growth in calendar year 2026 (CY26)
- Sustainability concerns related to capex growth
To address these risks, Itau BBA emphasizes the importance of faster AI adoption. They believe that increased AI infrastructure investment, driven by initiatives like Microsoft's M365 Copilot, could benefit Nvidia in the long run.
Price Projection:
Itau BBA maintains an Outperform rating on Nvidia stock and predicts a fair price range of $150 to $180 per share (based on a 30x P/E ratio). They expect Nvidia to deliver a USD5-6 EPS in CY25.
In conclusion, Nvidia remains a strong investment opportunity with potential for growth in the coming years. However, investors should be mindful of the risks and uncertainties associated with the tech sector. Keeping a close eye on Nvidia's performance and industry trends will be key to making informed investment decisions.