William Blair analyst Sebastien Naji has reiterated their bullish stance on NVDA stock, giving a Buy rating today.
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Sebastien Naji has given his Buy rating due to a combination of factors that highlight Nvidia’s robust financial performance and strategic positioning in the market. The company reported a strong fiscal third quarter, marked by record data center revenues driven by significant growth in compute and networking sectors. This performance underscores Nvidia’s leading role in the accelerated computing infrastructure space, as evidenced by the successful transition to Blackwell, with GB300 revenues significantly outpacing GB200.
Naji also notes the strategic importance of Nvidia’s supply chain management, which serves as a key differentiator. Despite challenges such as rising component and memory costs, Nvidia’s long-term capacity agreements with suppliers are expected to maintain gross margins in the mid-70% range by 2026. This demonstrates Nvidia’s pricing power and its ability to transfer increased costs to customers. Additionally, the company’s strong balance sheet and commitments have fostered confidence among ecosystem partners, ensuring long-term and high-volume supply contracts. These factors collectively reinforce the Buy rating for Nvidia’s stock.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 126 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NVDA in relation to earlier this year.