Updated Aug 18 at 5:05pm ET.
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Needham analysts kept their buy rating on the stock with a $2,000 price target. This suggests they see significant room for the stock to rise from its current level of about $1,345.
The high target reflects confidence in the company's ability to keep winning business in high-end computing. While price targets are just estimates of what a stock might be worth in a year, this one signals that analysts believe the company's technical edge in power management remains intact.
Source: Needham
KeyBanc raised its price target for the stock from $2,000 to $2,100 while keeping an overweight rating, which is their way of saying they expect it to perform better than the broader market.
This move follows a period of strong growth in the company's enterprise data business. By raising the target, the firm is signaling that the company's specialized chips for AI and data centers are likely to command a higher value as demand for high-performance power management continues to scale.
Source: KeyBanc
The company reported revenue of about $981 million for the quarter, which was well ahead of the $900 million analysts expected. Profits also came in strong, with adjusted earnings of $6.50 per share compared to the $5.87 forecast. This growth was driven by a 48 percent increase in sales compared to the same time last year.
Gross margin, which measures the profit left after the direct costs of making the chips, held steady at about 55 percent. This is a key number for the company because it proves they can maintain high prices even as they grow. The results suggest that the company is successfully defending its position in the AI server market, where its efficient power management chips are a critical component for high-end processors.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The law firm Kahn Swick & Foti announced an investigation into whether company leaders breached their duties to shareholders. The probe stems from a research report in late 2024 that claimed Nvidia had cancelled a portion of its orders for the company's power management chips. While these types of investigations are common after a stock sees volatility, they are worth watching for any formal legal filings. However, the company's most recent financial results showed record revenue and strong growth, which contradicts the idea that it is losing its place in the AI supply chain.
Source: Business Wire
Analysts recently reaffirmed their positive outlooks following a flurry of activity at the end of July. Most analysts, 22 of 25, rate the stock a buy with an average target price that suggests 35% upside from today.
The company has beaten analyst profit targets for eight straight quarters. This track record shows a business that is consistently outrunning even the most bullish forecasts as AI demand surges.
| Expectation | |
|---|---|
| EPS | $7.69 |
| Revenue | $1.15B |
PRNewsWire · Press release · Aug 17
PRNewsWire · Press release · Aug 10
Seeking Alpha · Opinion · Aug 4
Seeking Alpha · Opinion · Aug 3
GlobeNewsWire · Press release · Jul 30
Business Wire · Press release · Jul 24
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