TD Cowen increased its price target for NVIDIA Corporation (NASDAQ:NVDA) to $175 from $140 on May 29, 2025. The analysts kept a Buy rating on the stock. This move is the firm’s response to NVIDIA’s Q1 2026 earnings results.
NVIDIA’s Q1 2026 financial report maintained the momentum that investors have gotten used to over the past few years. For starters, revenue grew by 12% from the previous quarter to $44.1 billion—a 69% growth year-over-year. This is also the fifth straight quarter of revenue growth. Excluding the H20 charge, NVIDIA’s non-GAAP gross margin would have been 71.3%, and earnings per share would have reached $0.96.
TD Cowen analysts are of the opinion that NVIDIA has more space for revenue growth. They said that they initially had concerns over a diminish in rack-scale performance, but this is no longer the case because of “positive feedback on NVIDIA’s NVLink (NVL) deployments among major cloud service providers.” Also, the firm noted that NVIDIA’s Blackwell NVL72 AI supercomputer is now in full-scale production across system makers and cloud providers.
“A strong print and guide was well above investor expectations after accounting for H20 write-downs. Rack-scale concerns are receding with strong commentary on NVL deployments at hyperscalers,” TD Cowen analysts stated.
Most importantly, the firm pointed to NVIDIA’s impressive financial metrics, including a robust gross profit margin of 75% and return on equity of 119%.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs) for the gaming and professional markets. They also make systems on chip units for the mobile computing and automotive market. The company’s key products include GeForce GPUs for gaming, AI-powered chips for data centers, and automotive platforms for autonomous driving.
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