Nvidia(US:NVDA) BOCOM International·2025-02-28 01:25Investment Rating - The report maintains a "Buy" rating for NVIDIA (NVDA US) with a target price of $168.00, indicating a potential upside of 28.0% from the current price of $131.28 [1][3][10]. Core Insights - NVIDIA's performance has exceeded expectations, particularly in the data center segment, with revenue guidance for Q1 FY26 set at a median of $42.14 billion, reflecting strong growth prospects [6][7]. - The company is expected to benefit from the increasing demand for AI computing power, with management highlighting the growing importance of GPUs over ASICs in data centers [6][7]. - The upcoming GTC event is anticipated to be a catalyst for NVIDIA's stock price, with new product announcements expected to drive investor interest [6][7]. Financial Overview - Revenue projections show significant growth, with expected revenues of $130.5 billion in FY25, $211.7 billion in FY26, and $270.5 billion in FY27, representing year-over-year growth rates of 114.2%, 62.2%, and 27.8% respectively [2][18]. - Non-GAAP net profit is projected to reach $74.3 billion in FY25, $117.5 billion in FY26, and $155.1 billion in FY27, with corresponding EPS estimates of $2.99, $4.74, and $6.28 [2][18]. - The report indicates a strong gross margin of 73.5% for Q4 FY25, with expectations for a slight decline to 71% in Q1 FY26, but management anticipates a recovery in margins later in the year [6][7]. Market Position - NVIDIA's market capitalization is approximately $3.1 trillion, with a 52-week high of $149.43 and a low of $76.20, indicating significant volatility and investor interest [5][10]. - The company has a strong presence in the data center market, with revenue from this segment expected to continue growing, driven by capital expenditure from cloud service providers [6][7]. Valuation Metrics - The report notes a price-to-earnings (P/E) ratio of 97.7 for FY24, decreasing to 42.3 for FY25, and further down to 26.7 for FY26, reflecting a more attractive valuation as earnings grow [2][18]. - The price-to-book (P/B) ratio is projected to decline from 73.48 in FY24 to 7.02 in FY28, indicating a potential for value appreciation as the company scales [2][18].