Key insights
- UBS reiterated a Buy rating on Nvidia, citing strong AI-driven demand indicated by elevated Taiwan export data despite a monthly decline. TSMC's strong sales further support this view. Nvidia's potential AI server build in Japan and partnership with IREN Limited for AI infrastructure deployment are also positive catalysts. The stock is considered undervalued, with analysts anticipating continued sales growth.
Investing.com - UBS reiterated a Buy rating on Nvidia (NASDAQ:NVDA) stock with a $245.00 price target on Monday. The stock currently trades at $221.23, near its 52-week high, and has delivered an 84% return over the past year.
The firm cited Taiwan Ministry of Finance April export data showing Automatic Data Processing equipment exports excluding laptops reached $23.5 billion, down 28% month-over-month from March’s $32.9 billion and below normal seasonal trends of negative 2.2% month-over-month.
UBS views the decline as largely reflecting normalization following March’s exceptionally strong rebound of 127.7% month-over-month, which was likely driven by post-Lunar New Year catch-up activity.
The firm noted the absolute level of exports remains elevated versus historical levels and continues to suggest healthy underlying AI-driven demand. The full first quarter now stands at $70.9 billion, up 7% quarter-over-quarter, below the firm’s data center revenue estimate. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value, with analysts anticipating continued sales growth. For deeper insights, investors can access Nvidia’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
TSMC reported first quarter sales up 8.4% quarter-over-quarter and above seasonality, UBS said.
In other recent news, Nvidia announced the appointment of Suzanne Nora Johnson to its board of directors, with her role set to commence on July 13, 2026. This appointment will expand the board from ten to eleven members. Johnson, who formerly held leadership roles at Goldman Sachs, will also join the audit committee. In another development, Nvidia is in discussions with SoftBank and Foxconn to potentially build artificial intelligence servers in Japan, as reported by Nikkei Asia. Meanwhile, IREN Limited has partnered with Nvidia to deploy up to 5 gigawatts of AI infrastructure, aiming to enhance access for AI-native, startup, and enterprise customers. This partnership includes a significant financial agreement, granting Nvidia the right to purchase up to 30 million shares of IREN, valued at a potential $2.1 billion, pending regulatory approval. Additionally, Compass Point has reiterated a Buy rating on IREN, following its third-quarter fiscal 2026 results and a major contract announcement with Nvidia. These developments mark significant strategic moves for Nvidia in the AI and technology sectors.
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