Wall St Engine
VINFAST $VFS IN TALKS FOR $200M LOAN FROM INDIAN BANKS AHEAD OF INDIA LAUNCH — Part of its $500M India investment, the loan could be in rupees or foreign currency. Plant opens June 30 in Tamil Nadu, with VF6 and VF7 bookings coming soon. Shift marks pivot away from U.S. and EU focus
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VINFAST $VFS IN TALKS FOR $200M LOAN FROM INDIAN BANKS AHEAD OF INDIA LAUNCH — Part of its $500M India investment, the loan could be in rupees or foreign currency. Plant opens June 30 in Tamil Nadu, with VF6 and VF7 bookings coming soon. Shift marks pivot away from U.S. and EU focus
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Deutsche Bank Upgrades $LUV to Buy from Hold, Raises PT to $40 from $28
Analyst comments: "Upgrading LUV from Hold to Buy… three key reasons. In conjunction with the release of our 2025 edition of our Value Creation Primer dated May 28, 2025, we are upgrading Southwest (LUV) from Hold to Buy based on three key reasons. The three drivers behind our Buy rating are as follows: 1) Southwest's refreshed board of directors (along with Elliott Management) has ushered in a new era of change at the company, which we think will drive higher shareholder returns; 2) current strategic initiatives should drive meaningful revenue and EBIT growth over the next 12–24 months; and 3) we think Southwest's return on invested capital (ROIC) will significantly improve over the next two years."
Analyst: Michael Linenberg
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Deutsche Bank Upgrades $LUV to Buy from Hold, Raises PT to $40 from $28
Analyst comments: "Upgrading LUV from Hold to Buy… three key reasons. In conjunction with the release of our 2025 edition of our Value Creation Primer dated May 28, 2025, we are upgrading Southwest (LUV) from Hold to Buy based on three key reasons. The three drivers behind our Buy rating are as follows: 1) Southwest's refreshed board of directors (along with Elliott Management) has ushered in a new era of change at the company, which we think will drive higher shareholder returns; 2) current strategic initiatives should drive meaningful revenue and EBIT growth over the next 12–24 months; and 3) we think Southwest's return on invested capital (ROIC) will significantly improve over the next two years."
Analyst: Michael Linenberg
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Goldman Sachs says the recent trade court ruling won’t stop the Trump administration from moving forward with new tariffs. In a note, Alec Phillips writes that even if the IEEPA-based tariffs are struck down, the White House could use Section 122 of the Trade Act of 1974 to impose up to 15% tariffs for 150 days without any formal investigation. That short-term move could serve as a bridge while launching Section 301 investigations, which take longer but allow for more durable, targeted tariffs.
Goldman notes that sector-based tariffs, like those already applied to steel and autos under Section 232, remain unaffected by the court ruling. Phillips adds, “We already expect additional sectoral tariffs (pharmaceuticals, semiconductors/electronics, etc.) and uncertainty regarding the IEEPA-based tariffs could lead the White House to put more emphasis on sectoral tariffs, where there is much less legal uncertainty.”
He also flags Section 338 of the 1930 Trade Act as another tool available to the president, though it’s never been used and doesn’t require congressional input. Overall, Goldman calls the court ruling a “nothingburger” given the other options still available to impose trade measures.
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Goldman Sachs says the recent trade court ruling won’t stop the Trump administration from moving forward with new tariffs. In a note, Alec Phillips writes that even if the IEEPA-based tariffs are struck down, the White House could use Section 122 of the Trade Act of 1974 to impose up to 15% tariffs for 150 days without any formal investigation. That short-term move could serve as a bridge while launching Section 301 investigations, which take longer but allow for more durable, targeted tariffs.
Goldman notes that sector-based tariffs, like those already applied to steel and autos under Section 232, remain unaffected by the court ruling. Phillips adds, “We already expect additional sectoral tariffs (pharmaceuticals, semiconductors/electronics, etc.) and uncertainty regarding the IEEPA-based tariffs could lead the White House to put more emphasis on sectoral tariffs, where there is much less legal uncertainty.”
He also flags Section 338 of the 1930 Trade Act as another tool available to the president, though it’s never been used and doesn’t require congressional input. Overall, Goldman calls the court ruling a “nothingburger” given the other options still available to impose trade measures.
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Wall St Engine
Jefferies Downgrades $GEV to Hold from Buy, Raises PT to $517 from $427
Analyst comments: "Downgrade to HOLD: current price adequately reflects premium on above-Consensus (+15% vs. Street) 2028 Jefferies estimates. Long-term power fundamentals remain strong but narrowing incremental risk/reward after recent outperformance. Newly-extended Power modeling shows meaningful margin expansion into mid-20s% on services attachment in 2030+ assuming flat original equipment volume. The duration of original equipment demand is the open question and consequential. Raise price target to $517 (+8% total shareholder return) on higher Power estimates."
Analyst: Julian Dumoulin-Smith
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Jefferies Downgrades $GEV to Hold from Buy, Raises PT to $517 from $427
Analyst comments: "Downgrade to HOLD: current price adequately reflects premium on above-Consensus (+15% vs. Street) 2028 Jefferies estimates. Long-term power fundamentals remain strong but narrowing incremental risk/reward after recent outperformance. Newly-extended Power modeling shows meaningful margin expansion into mid-20s% on services attachment in 2030+ assuming flat original equipment volume. The duration of original equipment demand is the open question and consequential. Raise price target to $517 (+8% total shareholder return) on higher Power estimates."
Analyst: Julian Dumoulin-Smith
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$KC | Kingsoft Cloud Q1'25 Earnings Highlights:
🔹 Adj. EPS: (RMB 0.08) (Est. RMB -0.62) 🟢
🔹 Revenue: RMB 1.97B (Est. RMB 2B) 😐; +10.9% YoY,
🔹 Non-GAAP Gross Margin: 16.6%
Segment Performance:
🔸 AI Gross Billing: RMB 525M; +228% YoY, now 39% of Public Cloud
🔹 Public Cloud Revenue: RMB 1.35B; +14.0% YoY, -4.0% QoQ
🔹 Enterprise Cloud Revenue: RMB 616.5M; +4.8% YoY, -25.0% QoQ
Profitability & Expenses:
🔹 Cost of Revenue: RMB 1.65B; +11.4% YoY
• IDC Cost: RMB 722.8M; -6.0% YoY
• Depreciation/Amortization: RMB 378.5M; Up significantly YoY
🔹 Total OpEx: RMB 552.5M; -2.6% YoY, +17.7% QoQ
• S&M: RMB 144.3M (+23.6% YoY)
• G&A: RMB 182.0M (-16.8% YoY)
• R&D: RMB 226.2M (-2.5% YoY)
Balance Sheet & Cash:
🔹 Cash & Equivalents: RMB 2.32B (vs. RMB 2.65B as of Dec 2024)
🔹 Outstanding Shares: 3.7B (≈246.9M ADSs)
🔸 CEO Tao Zou: "Gross billing in AI jumped 228% YoY. AI is becoming core to cloud infrastructure and we are fully committed to sustainable business development."
🔸 CFO Henry He: “We posted solid year-over-year growth, but saw seasonal softness QoQ. Leasing helps reduce upfront cash needs but weighs on GPM near term.”
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$KC | Kingsoft Cloud Q1'25 Earnings Highlights:
🔹 Adj. EPS: (RMB 0.08) (Est. RMB -0.62) 🟢
🔹 Revenue: RMB 1.97B (Est. RMB 2B) 😐; +10.9% YoY,
🔹 Non-GAAP Gross Margin: 16.6%
Segment Performance:
🔸 AI Gross Billing: RMB 525M; +228% YoY, now 39% of Public Cloud
🔹 Public Cloud Revenue: RMB 1.35B; +14.0% YoY, -4.0% QoQ
🔹 Enterprise Cloud Revenue: RMB 616.5M; +4.8% YoY, -25.0% QoQ
Profitability & Expenses:
🔹 Cost of Revenue: RMB 1.65B; +11.4% YoY
• IDC Cost: RMB 722.8M; -6.0% YoY
• Depreciation/Amortization: RMB 378.5M; Up significantly YoY
🔹 Total OpEx: RMB 552.5M; -2.6% YoY, +17.7% QoQ
• S&M: RMB 144.3M (+23.6% YoY)
• G&A: RMB 182.0M (-16.8% YoY)
• R&D: RMB 226.2M (-2.5% YoY)
Balance Sheet & Cash:
🔹 Cash & Equivalents: RMB 2.32B (vs. RMB 2.65B as of Dec 2024)
🔹 Outstanding Shares: 3.7B (≈246.9M ADSs)
🔸 CEO Tao Zou: "Gross billing in AI jumped 228% YoY. AI is becoming core to cloud infrastructure and we are fully committed to sustainable business development."
🔸 CFO Henry He: “We posted solid year-over-year growth, but saw seasonal softness QoQ. Leasing helps reduce upfront cash needs but weighs on GPM near term.”
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Wall St Engine
UBS Lowers PT on $HPQ to $26 from $37, Maintains Neutral Rating
Analyst comments: "HP reported arguably a solid revenue quarter, but higher tariff and commodity inputs materially impacted Personal Systems margins, leading to not only an EPS miss but a sharp revision to the FY25 EPS guide that will likely lead to a materially reset lower in not only estimates but HP's share price. Despite the shares in the after-market trading at 8x our updated next twelve months EPS estimate of $3.15, a steep discount to the market, shares are likely to remain range bound given a lack of near-term catalysts despite what should be the final EPS revision. Furthermore, we previously expected a recovery in PC demand driven by an aging installed base and a Windows 11 refresh cycle. However, Personal Systems growth this year is likely to be more muted than previously expected given inconsistent tariff proposals leading to demand disruption across Enterprise and Consumer markets. As such, HP now expects the PC market to grow low-single digits in calendar year 2025 versus our prior expectations of 4–5%. As such, we cut our FY25 EPS estimate to $3.02 from $3.54, at the low end of the updated $3.00–$3.30 guidance range. While it is tempting to call a trough in the shares, tariff uncertainty in China, Southeast Asia, and even Latin America keeps us on the sidelines."
Analyst: David Vogt
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UBS Lowers PT on $HPQ to $26 from $37, Maintains Neutral Rating
Analyst comments: "HP reported arguably a solid revenue quarter, but higher tariff and commodity inputs materially impacted Personal Systems margins, leading to not only an EPS miss but a sharp revision to the FY25 EPS guide that will likely lead to a materially reset lower in not only estimates but HP's share price. Despite the shares in the after-market trading at 8x our updated next twelve months EPS estimate of $3.15, a steep discount to the market, shares are likely to remain range bound given a lack of near-term catalysts despite what should be the final EPS revision. Furthermore, we previously expected a recovery in PC demand driven by an aging installed base and a Windows 11 refresh cycle. However, Personal Systems growth this year is likely to be more muted than previously expected given inconsistent tariff proposals leading to demand disruption across Enterprise and Consumer markets. As such, HP now expects the PC market to grow low-single digits in calendar year 2025 versus our prior expectations of 4–5%. As such, we cut our FY25 EPS estimate to $3.02 from $3.54, at the low end of the updated $3.00–$3.30 guidance range. While it is tempting to call a trough in the shares, tariff uncertainty in China, Southeast Asia, and even Latin America keeps us on the sidelines."
Analyst: David Vogt
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Wall St Engine
KeyBanc is sticking with its Underweight rating and $100 price target on First Solar. Analyst Sophie Karp notes that while $FSLR has underperformed the broader market, it’s held up better than some renewable peers, partly because it’s seen as less exposed to recent IRA-related uncertainty in Congress.
She points out that Section 45X manufacturing credits—which are important to FSLR’s earnings—have not been subject to the same aggressive phase-out as other clean energy credits so far. Under the current bill version, those credits would step down gradually through 2032. Still, Karp cautions that the Senate may continue looking for budget savings, so 45X may not be fully secure.
She also notes that 45X makes up a large part of FSLR’s projected earnings, and when removing that impact, the core business appears to be trading at over 30x earnings—something she sees as high.
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KeyBanc is sticking with its Underweight rating and $100 price target on First Solar. Analyst Sophie Karp notes that while $FSLR has underperformed the broader market, it’s held up better than some renewable peers, partly because it’s seen as less exposed to recent IRA-related uncertainty in Congress.
She points out that Section 45X manufacturing credits—which are important to FSLR’s earnings—have not been subject to the same aggressive phase-out as other clean energy credits so far. Under the current bill version, those credits would step down gradually through 2032. Still, Karp cautions that the Senate may continue looking for budget savings, so 45X may not be fully secure.
She also notes that 45X makes up a large part of FSLR’s projected earnings, and when removing that impact, the core business appears to be trading at over 30x earnings—something she sees as high.
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Wall St Engine
BofA Securities Raises PT on $ELF to $113 from $95, Maintains Buy Rating
Analyst comments: "We are positive on the acquisition of Rhode for several reasons: 1) as an entirely direct-to-consumer brand, ELF has significant distribution opportunity (Rhode is launching in Sephora U.S. and Canada stores in the fall, and Sephora UK by year-end), 2) Rhode is expected to be accretive to gross margin, EBITDA margin, and earnings, suggesting room for deeper investments in marketing, 3) tightens ELF’s relationship with Gen Z consumers who seek out prestige-level products. Rhode offers 10 products from $18 to $38 (vs. ELF average at $6.50 and mass peers at $9.50). Rhode is expected to close by the end of fiscal Q2."
Analyst: Anna Lizzul
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BofA Securities Raises PT on $ELF to $113 from $95, Maintains Buy Rating
Analyst comments: "We are positive on the acquisition of Rhode for several reasons: 1) as an entirely direct-to-consumer brand, ELF has significant distribution opportunity (Rhode is launching in Sephora U.S. and Canada stores in the fall, and Sephora UK by year-end), 2) Rhode is expected to be accretive to gross margin, EBITDA margin, and earnings, suggesting room for deeper investments in marketing, 3) tightens ELF’s relationship with Gen Z consumers who seek out prestige-level products. Rhode offers 10 products from $18 to $38 (vs. ELF average at $6.50 and mass peers at $9.50). Rhode is expected to close by the end of fiscal Q2."
Analyst: Anna Lizzul
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HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $NVDA EARNINGS:
BofA Securities (Buy, PT: $180)
"Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production, with every large hyperscaler now ramping close to 1K racks/week, 13K racks/quarter or ~$30bn+/q at $2.5mn+ rack ASP (or $100bn+ across the top few hyperscalers, though NVDA didn’t quantify further), and 3) NVDA confident in GM recovery back to mid-70s % sometime later in the year, another sign of improving demand and rack-scale execution. Networking also returned to low/mid-double-digit of Data Center revenue in Q1, as NVDA’s complete portfolio of NVLink (Scale-Up), Quantum/Spectrum (Scale-Out), and BlueField (DPUs/NICs) in rack-scale systems is now fully ramping across multiple hyperscalers (inclusive of new Google/Meta win for Spectrum-X) – an incremental AVGO headwind. We reiterate Buy on top pick NVDA, raising our FY26/27/28E pf-EPS by 6%/2%/12% to $4.21/$5.87/$7.23, and PO to $180 from $160 on higher 30x PE vs 28x prior given faster EPS growth."
Wells Fargo (Overweight, PT: $185)
"NVIDIA is guiding F2Q26 revenue at $45B +/- 2%, GM% at ~72% +/- 50bps, and ~$4B opex vs prior Street at ~$42.8B / 73.1% / $3.9B. With OI&E at ~$450M and a 16.5% tax rate, we estimate implied F2Q26 non-GAAP EPS at ~$0.94-$1.02 (prior Street at $0.99). NVDA expects modest sequential growth across all platforms. Shares are now trading at 24x and 21x our CY26 & CY27, respectively — near a trough relative P/E to SOX. We reiterate Overweight and our $185 PT as investor sentiment may shift toward a path to $6+ in CY26 EPS."
Melius (Buy, PT: $205)
"The Momentum is Back: The ex-China guide seems to be $2-3B above expectations, implying stronger demand at major clouds and in gaming for new Blackwell products. Gross margins are likely to return to the mid-70s quickly in 2H26, boosting long-term earnings. NVDA’s tone is significantly improved since the AI Diffusion rule was rescinded, and Trump has catalyzed massive Sovereign AI demand. We believe China AI revenue (~$8B/quarter) may not be permanently lost. We raise our PT to $205 on increased estimates and a more optimistic demand outlook."
DA Davidson (Neutral, PT: $135)
"We maintain our NEUTRAL rating and raise our PT to $135 (from $120) following mixed earnings. While top-line results were better than expected, the lack of H20 sales into China significantly impacted results. We believe the market continues to under-account for China’s contribution, which remains the largest overhang. Resolution from the administration on export policies will be key for future visibility."
Stifel (Buy, PT: $180)
"NVDA beat F1Q expectations despite $2.5bn in unfulfilled H20 revenue. Adjusted GM of 71.3% was slightly above guidance. F2Q revenue guidance of $45B was better than feared and could have been $8B higher absent the H20 restriction. Non-China Data Center revenue appears to be growing ~30% sequentially as GB200 ramps. GB300 systems began sampling in early May with production expected later this quarter. NVDA maintained its outlook for a mid-70s GM recovery by fiscal year-end. We expect a strong back half of FY26. Reiterate Buy."
Morgan Stanley (Overweight, PT: $170)
"We’re raising FY26 revenue and EPS to $198.8B/$4.33. FY27 moves to $264.6B/$6.28 from $252.9B/$6.01. Blackwell demand remains strong with China derisked, at least for direct shipments. Gross margins have bottomed and are now improving. Commentary from customers confirms strong demand as new technologies roll out. We see high probability of upward revisions and raise PT to $170 from $160, maintaining our 28x target multiple."
Evercore ISI (Outperform, PT: $190)
"Still a Top Pick post AprQ. We maintain Outperform fol[...]
HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $NVDA EARNINGS:
BofA Securities (Buy, PT: $180)
"Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production, with every large hyperscaler now ramping close to 1K racks/week, 13K racks/quarter or ~$30bn+/q at $2.5mn+ rack ASP (or $100bn+ across the top few hyperscalers, though NVDA didn’t quantify further), and 3) NVDA confident in GM recovery back to mid-70s % sometime later in the year, another sign of improving demand and rack-scale execution. Networking also returned to low/mid-double-digit of Data Center revenue in Q1, as NVDA’s complete portfolio of NVLink (Scale-Up), Quantum/Spectrum (Scale-Out), and BlueField (DPUs/NICs) in rack-scale systems is now fully ramping across multiple hyperscalers (inclusive of new Google/Meta win for Spectrum-X) – an incremental AVGO headwind. We reiterate Buy on top pick NVDA, raising our FY26/27/28E pf-EPS by 6%/2%/12% to $4.21/$5.87/$7.23, and PO to $180 from $160 on higher 30x PE vs 28x prior given faster EPS growth."
Wells Fargo (Overweight, PT: $185)
"NVIDIA is guiding F2Q26 revenue at $45B +/- 2%, GM% at ~72% +/- 50bps, and ~$4B opex vs prior Street at ~$42.8B / 73.1% / $3.9B. With OI&E at ~$450M and a 16.5% tax rate, we estimate implied F2Q26 non-GAAP EPS at ~$0.94-$1.02 (prior Street at $0.99). NVDA expects modest sequential growth across all platforms. Shares are now trading at 24x and 21x our CY26 & CY27, respectively — near a trough relative P/E to SOX. We reiterate Overweight and our $185 PT as investor sentiment may shift toward a path to $6+ in CY26 EPS."
Melius (Buy, PT: $205)
"The Momentum is Back: The ex-China guide seems to be $2-3B above expectations, implying stronger demand at major clouds and in gaming for new Blackwell products. Gross margins are likely to return to the mid-70s quickly in 2H26, boosting long-term earnings. NVDA’s tone is significantly improved since the AI Diffusion rule was rescinded, and Trump has catalyzed massive Sovereign AI demand. We believe China AI revenue (~$8B/quarter) may not be permanently lost. We raise our PT to $205 on increased estimates and a more optimistic demand outlook."
DA Davidson (Neutral, PT: $135)
"We maintain our NEUTRAL rating and raise our PT to $135 (from $120) following mixed earnings. While top-line results were better than expected, the lack of H20 sales into China significantly impacted results. We believe the market continues to under-account for China’s contribution, which remains the largest overhang. Resolution from the administration on export policies will be key for future visibility."
Stifel (Buy, PT: $180)
"NVDA beat F1Q expectations despite $2.5bn in unfulfilled H20 revenue. Adjusted GM of 71.3% was slightly above guidance. F2Q revenue guidance of $45B was better than feared and could have been $8B higher absent the H20 restriction. Non-China Data Center revenue appears to be growing ~30% sequentially as GB200 ramps. GB300 systems began sampling in early May with production expected later this quarter. NVDA maintained its outlook for a mid-70s GM recovery by fiscal year-end. We expect a strong back half of FY26. Reiterate Buy."
Morgan Stanley (Overweight, PT: $170)
"We’re raising FY26 revenue and EPS to $198.8B/$4.33. FY27 moves to $264.6B/$6.28 from $252.9B/$6.01. Blackwell demand remains strong with China derisked, at least for direct shipments. Gross margins have bottomed and are now improving. Commentary from customers confirms strong demand as new technologies roll out. We see high probability of upward revisions and raise PT to $170 from $160, maintaining our 28x target multiple."
Evercore ISI (Outperform, PT: $190)
"Still a Top Pick post AprQ. We maintain Outperform fol[...]
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Wall St Engine HERE'S WHAT ANALYSTS HAVE TO SAY AFTER $NVDA EARNINGS: BofA Securities (Buy, PT: $180) "Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production…
lowing a 9% EPS beat and July guidance only 1% below consensus. Key concerns—Blackwell delays, hyperscaler digestion, and ASIC competition—were addressed on the call. Blackwell now accounts for 70% of DC revenue and is scaling fast, with 72,000 GPUs deployed per week by major hyperscalers. GB300 production begins this quarter. Our checks confirm continued CapEx strength and NVDA’s position as the AI ecosystem leader."
JPMorgan (Overweight, PT: $170)
"Strong April revenue of $44B (vs est. $43B) despite $2.5B in lost H20 GPU sales. GM was impacted by $4.5B in write-downs, with EPS of $0.81 vs $0.93 consensus. July guidance of $45B is better than expected after adjusting for China bans. Data Center revenue ex-H20 appears to be up 16% sequentially. Blackwell and GB300 ramps are progressing well. Networking revenue was also strong, driven by NVLink switches. We estimate $5B in unshipped H20 orders for 2H25."
Citi (Buy, PT: $180)
"Apr-Q sales of $44B were ~$1B above preview expectations. Blackwell sales of $24B topped our $20B estimate, and margins are expected to return to mid-70s in 2H on improved profitability. China bans were a $2.5B drag in Apr and an $8B headwind in July. NVDA now has line of sight to sovereign AI projects representing tens of gigawatts in demand. FY26/27/28 EPS adjusted flat/+9%/+5%, and we raise our PT to $180 on a consistent 30x P/E. Maintain Buy."
Truist Securities (Buy, PT: $210)
"NVDA overcame major hurdles with Apr results and Jul guidance despite export controls. Demand from CSPs, enterprises, and sovereigns remains strong. China TAM is on hold, but our estimates continue to rise on margin recovery. CY26 EPS now at $5.99. We raise PT to $210 from $205 based on 35x EPS (10x discount to high-growth semi peers). NVDA’s innovation and execution continue to impress."
Summit Insights (Buy, No PT)
"We upgrade NVDA to Buy as concerns around double ordering and China exports are now priced in. Datacenter CapEx remains robust and supports NVDA’s AI GPU and networking segments. We acknowledge inference may lower compute requirements over time, but see no near- or medium-term impact. ODMs have resolved Blackwell technical challenges, and we expect NVDA to resume meaningful outperformance."
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JPMorgan (Overweight, PT: $170)
"Strong April revenue of $44B (vs est. $43B) despite $2.5B in lost H20 GPU sales. GM was impacted by $4.5B in write-downs, with EPS of $0.81 vs $0.93 consensus. July guidance of $45B is better than expected after adjusting for China bans. Data Center revenue ex-H20 appears to be up 16% sequentially. Blackwell and GB300 ramps are progressing well. Networking revenue was also strong, driven by NVLink switches. We estimate $5B in unshipped H20 orders for 2H25."
Citi (Buy, PT: $180)
"Apr-Q sales of $44B were ~$1B above preview expectations. Blackwell sales of $24B topped our $20B estimate, and margins are expected to return to mid-70s in 2H on improved profitability. China bans were a $2.5B drag in Apr and an $8B headwind in July. NVDA now has line of sight to sovereign AI projects representing tens of gigawatts in demand. FY26/27/28 EPS adjusted flat/+9%/+5%, and we raise our PT to $180 on a consistent 30x P/E. Maintain Buy."
Truist Securities (Buy, PT: $210)
"NVDA overcame major hurdles with Apr results and Jul guidance despite export controls. Demand from CSPs, enterprises, and sovereigns remains strong. China TAM is on hold, but our estimates continue to rise on margin recovery. CY26 EPS now at $5.99. We raise PT to $210 from $205 based on 35x EPS (10x discount to high-growth semi peers). NVDA’s innovation and execution continue to impress."
Summit Insights (Buy, No PT)
"We upgrade NVDA to Buy as concerns around double ordering and China exports are now priced in. Datacenter CapEx remains robust and supports NVDA’s AI GPU and networking segments. We acknowledge inference may lower compute requirements over time, but see no near- or medium-term impact. ODMs have resolved Blackwell technical challenges, and we expect NVDA to resume meaningful outperformance."
$NVDA | NVIDIA Q1'26 Earnings Highlights:
🔹 Adj. EPS: $0.81 (Est. $0.75) 😐; Excl. H20 charge: $0.96
🔹 Revenue: $44.1B (Est. $43.29B) 🟢; UP +69% YoY
🔹 Adj. Gross Margin: 61.0% (Est. 71%) 😐; Excl. H20 charge: 71.3%
Q2'26 Outlook:
🔹 Revenue: $45.0B ±2% (Est. $45.5B) 🟡
🔸 Outlook reflects ~$8.0B H20 revenue impact due to export controls
🔸 Additional $2.5B in H20 revenue unable to be shipped in Q1
Q1 Segment Performance:
🔹 Data Center Revenue: $39.1B (Est. $39.22B) 😐; UP +73% YoY
🔹 Automotive Revenue: $567M (Est. $579.4M) 🔴; UP +72% YoY
🔹 Networking Revenue: $4.96B (Est. $3.45B) 🟢
🔹 Compute Revenue: $34.16B (Est. $35.47B) 🔴
Other Key Q1 Metrics:
🔹 Adj. Operating Income: $23.28B (Est. $27.15B) 🔴; UP +29% YoY
🔹 Adj. Operating Expenses: $3.58B (Est. $3.63B) 🟢; UP +43% YoY
🔹 R&D Expenses: $3.99B (Est. $4.07B) 🟢; UP +47% YoY
🔹 Free Cash Flow: $26.14B; UP +75% YoY
🔹 Diluted EPS Ex-H20 Charge: $0.96
CEO Commentary:
🔸 Jensen Huang:
"Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production. Global demand for NVIDIA’s AI infrastructure is incredibly strong." tweet
Wall St Engine
BofA cuts its price target on Capri $CPRI to $21 from $23 but keeps a Neutral rating. Analyst Lorraine Hutchinson sees room for recovery at Kors and Choo, though near-term fundamentals remain weak. FY26 revenue outlook was lowered to $3.3–$3.4B, and operating income to $100M, with Versace now treated as a discontinued operation. EPS for FY27 was raised 22% on higher interest income from the Versace sale, despite tariff pressure. New target reflects added turnaround risk at a lower 9x EV/EBITDA multiple. (via BofA)
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BofA cuts its price target on Capri $CPRI to $21 from $23 but keeps a Neutral rating. Analyst Lorraine Hutchinson sees room for recovery at Kors and Choo, though near-term fundamentals remain weak. FY26 revenue outlook was lowered to $3.3–$3.4B, and operating income to $100M, with Versace now treated as a discontinued operation. EPS for FY27 was raised 22% on higher interest income from the Versace sale, despite tariff pressure. New target reflects added turnaround risk at a lower 9x EV/EBITDA multiple. (via BofA)
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Cantor Fitzgerald says $ORIC Pharmaceuticals delivered a solid prostate cancer update with ORIC-944. Early Phase 1 data shows about a 50% PSA50 response rate, now in range with PSMA-targeted therapies and ahead of Pfizer’s similar PRC2 inhibitor, mevrometostat. Analyst Prakhar Agrawal sees early signs of safety differentiation and a strong setup for more catalysts ahead. With shares up over 20% pre-market, he still sees the stock as undervalued at a ~$600M market cap, given the multi-blockbuster potential. Rating remains Overweight.
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Cantor Fitzgerald says $ORIC Pharmaceuticals delivered a solid prostate cancer update with ORIC-944. Early Phase 1 data shows about a 50% PSA50 response rate, now in range with PSMA-targeted therapies and ahead of Pfizer’s similar PRC2 inhibitor, mevrometostat. Analyst Prakhar Agrawal sees early signs of safety differentiation and a strong setup for more catalysts ahead. With shares up over 20% pre-market, he still sees the stock as undervalued at a ~$600M market cap, given the multi-blockbuster potential. Rating remains Overweight.
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Wall St Engine
We’ll see if the court ruling holds, but for now, markets are dialing back recession odds—now down to 38%. Expectations for the Fed’s 2025 terminal rate cut are still sitting below 25bps. https://t.co/VsooOMDck6
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We’ll see if the court ruling holds, but for now, markets are dialing back recession odds—now down to 38%. Expectations for the Fed’s 2025 terminal rate cut are still sitting below 25bps. https://t.co/VsooOMDck6
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Wall St Engine
RBC Capital Downgrades $CRM to Sector Perform from Outperform, Lowers PT to $275 from $420
Analyst comments: "Our view: We are downgrading our rating on Salesforce from Outperform to Sector Perform and lowering our price target to $275 from $420 after Salesforce reported a relatively in-line quarter. Our downgrade is primarily driven by the formally announced acquisition of Informatica for $8 billion, as well as longer-term concerns."
Analyst: Rishi Jaluria
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RBC Capital Downgrades $CRM to Sector Perform from Outperform, Lowers PT to $275 from $420
Analyst comments: "Our view: We are downgrading our rating on Salesforce from Outperform to Sector Perform and lowering our price target to $275 from $420 after Salesforce reported a relatively in-line quarter. Our downgrade is primarily driven by the formally announced acquisition of Informatica for $8 billion, as well as longer-term concerns."
Analyst: Rishi Jaluria
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Wall St Engine
TD Cowen Downgrades $FRPT to Hold from Buy, PT $96
Analyst comments: "We downgrade Freshpet to reflect our concerns about decelerating retail sales growth trends. We see risk that the brand's refrigerated fresh dog food concept is nearing a saturation point sooner than expected. Activist JANA pushing for a sale of the business is an upside risk for the stock, but we don’t see a bid from a strategic acquirer materializing in the near term."
Analyst: Robert Moskow
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TD Cowen Downgrades $FRPT to Hold from Buy, PT $96
Analyst comments: "We downgrade Freshpet to reflect our concerns about decelerating retail sales growth trends. We see risk that the brand's refrigerated fresh dog food concept is nearing a saturation point sooner than expected. Activist JANA pushing for a sale of the business is an upside risk for the stock, but we don’t see a bid from a strategic acquirer materializing in the near term."
Analyst: Robert Moskow
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