UBS Sees 40% Upside for Nvidia with $245 Target After Q4 Beat
UBS analyst Timothy Arcuri reiterated a Buy rating on Nvidia with a $245 price target, implying nearly 40% upside after meeting CFO Colette Kress. Nvidia posted record Q4 revenue of $68.1 billion (+73% YoY), guided Q1 revenue of $78 billion versus $72.6 billion estimate, and saw networking revenue jump over 3.5x year-over-year.
1. Analyst Call and Price Target
Timothy Arcuri reiterated a Buy rating on Nvidia, maintaining a $245 price target that implies roughly 40% upside from prior trading levels. The affirmation followed his meeting with CFO Colette Kress during a UBS semiconductor tour, reinforcing confidence in Nvidia’s strategic trajectory.
2. Record Q4 Results and Guidance
Nvidia reported record fourth-quarter revenue of $68.1 billion, a 73% year-over-year increase and nearly $2 billion above estimates. Data center revenue reached $62.3 billion (+75% YoY) with gross margins at 75%, and Nvidia guided Q1 revenue of $78 billion versus a $72.6 billion forecast.
3. Networking Business Highlight
UBS emphasized Nvidia’s networking segment as the sleeper story, with Q4 networking revenue of nearly $11 billion, up more than 3.5x year-over-year. This growth, driven by the Spectrum-X platform rollout, suggests Nvidia’s diversification beyond core GPU sales is gaining traction.