Baird Reiterates Outperform on Nvidia (NVDA) Following Strong Q3 Results

Core Insights - NVIDIA Corporation has received an "Outperform" rating from Baird, with the price target raised from $225 to $275, reflecting strong confidence in its AI chip leadership and momentum [1][2] Financial Performance - NVIDIA reported fiscal third-quarter earnings of $1.30 adjusted EPS, surpassing the expected $1.25, and revenue of $57.01 billion, exceeding the anticipated $54.92 billion [2] - The company provided stronger-than-expected sales guidance for the fourth quarter, indicating robust future performance [2] Market Demand and Supply - There is a significant demand for NVIDIA's Blackwell chips, which is currently exceeding supply, similar to a situation faced in the first half of 2024 [3][4] - Analysts emphasize that TSMC's capacity will be critical for NVIDIA's performance in the upcoming year [3] Competitive Advantage - NVIDIA is expected to maintain a substantial performance lead in the AI sector through 2026 and likely into 2027, driven by its architecture leadership and insatiable AI demand [4][5] - The combination of strong AI demand and ongoing architectural performance is seen as a basis for potential multiple expansion for the company [5]