Nvidia(US:NVDA) Benzingaยท2025-11-20 14:14Core Insights - Nvidia Corp. reported a strong third-quarter earnings, with revenue of $57.01 billion, exceeding Wall Street's expectation of $54.88 billion, and earnings per share (EPS) of $1.30, surpassing the forecast of $1.25, reflecting a 60.5% year-over-year increase [1][2] Financial Performance - Gross margin was reported at 73.6%, with operating income reaching $37.75 billion, resulting in an operating margin of 66.2%, both figures among the highest in the S&P 500 [2] - The Data Center segment was a significant growth driver, with revenue soaring to $51.2 billion, a 56% increase from the previous year, and exceeding estimates by over $1.5 billion [3][4] Future Outlook - Nvidia's management indicated potential upside to its previous $500 billion Data Center revenue outlook for 2025-2026, driven by strong AI demand [3][4] - For the fourth quarter, Nvidia guided revenue to $65 billion, surpassing Goldman Sachs' estimate of $63.2 billion and the Street's estimate of $62.4 billion, with gross margin guidance set at 75% [5] Valuation and Price Target - Goldman Sachs raised its 12-month price target for Nvidia from $240 to $250, reflecting increased confidence in the company's earnings power and margin resilience, expecting a 30x forward earnings multiple on a revised EPS forecast of $8.25 [6] - In a bullish scenario, Nvidia could achieve an EPS of $9.50 with a 35x multiple, leading to a price target of $333, indicating nearly 70% upside [7] - In a bearish scenario, projected EPS of $5.80 with a 25x multiple would result in a price target of $145, representing a potential 26.3% downside [8]