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Rosenblatt Securities reaffirmed its Buy rating on NVIDIA (NVDA, Financials) and maintained a $220 price target, anticipating a solid F4Q25 earnings report scheduled for Wednesday after market close.
Supported by ongoing robust demand for artificial intelligence accelerators, the company predicts modest outperformance compared to consensus forecasts.
Analysts point to Blackwell, the next-generation product line from NVIDIA, as a main engine of expansion. Expected to start in F4Q25, demand is probably going to outstrip supply during FY26. In line with NVIDIA's 152.44% revenue increase over the last 12 months, the company forecasts more shipments in the second half of the fiscal year.
While the company now trades at a P/E ratio of 52.79, Rosenblatt's valuation positions NVIDIA at 44 times the expected FY27 EPS. Citing product complexity, varied configurations, and industry-leading margins as advantages versus rivals in the GPU and ASIC accelerator industries, analysts remain upbeat.
The next GPU Technology Conference by NVIDIA in March is supposed to provide further understanding of the strategic roadmap and market positioning of the firm.
This article first appeared on GuruFocus.