Nvidia (NVDA) is a technology company that focuses on designing and developing graphics processing units (GPUs) for high-performance computing. It also develops application programming interfaces (APIs) and is the market leader in artificial intelligence (AI) hardware and software.

Founded in 1993, the company first incorporated in Delaware and then later shifted its headquarters to Santa Clara, California.

Nvidia’s stock has been the multi-bagger that everyone on Wall Street has been talking about. NVDA stock has widely outperformed the market, giving investors a massive 2,000% return in the last five years. It continued the trend last year as well, climbing 179% despite trading sideways for the second half of the year.

Facing some near-term pressure, the stock has slipped nearly 12% over the past five days after setting a fresh 52-week high of $153.13 on Jan. 7, 2025.

Truist Weighs In on Nvidia Stock 

Last week, Truist Securities showed confidence in Nvidia by reiterating its “Buy” rating and its price target of $204, which signals 54% upside potential. Unsurprisingly, the analysts cite AI as the leading reason for their optimism in NVDA shares.

The company says “Nvidia is the AI stock,” and its dominance in the field is a reflection of its innovation and its investment in research and development over the last several years. 

Truist Securities’ price target of $204 is approximately 35 times its projected earnings of $5.84 for calendar year 2026. It would also suggest that Nvidia, despite its red-hot rally in recent years, is 15x cheaper than other tech giants. 

Nvidia stock also received positive feedback from Bank of America and Bernstein, both reiterating their “Buy”-equivalent ratings on the AI stock. 

Nvidia’s Solid Q3 Results

Nvidia reported its third-quarter results last year on Nov. 20. The tech giant posted a profit of $19.31 billion, up 16.32% year-over-year and translating into earnings per share of $0.81. This beat the average analyst estimate for EPS of $0.75. The company also achieved record revenue of $35.08 billion, a nearly 94% increase year-over-year. Its revenue also bested the market’s $33.33 billion estimate.

The results included one point of concern for investors, the decline in gross margin. The company saw a small quarter-over-quarter dip from the 75.1% reported in Q2 to the 74.6% reported in the third quarter. 

Management expects revenue for the ongoing fourth quarter to come at $37.5 billion at the midpoint, over analyst’s $37.03 billion estimate. The company also projects a further slip in gross margin to be between 73% and 73.5%.

Analyst Ratings on NVDA Stock

Nvidia has strong support from market experts, with a consensus “Strong Buy” rating and a mean price target above its 52-week high of $176.19, reflecting further upside potential of nearly 35%.

The stock is being monitored by 43 analysts with 36 “Strong Buy” ratings, three "Moderate Buy” ratings, and four “Hold” ratings.