NVIDIA (NasdaqGS:NVDA) Jumps 14% In One Week After Quantum Machines Partnership

Simply Wall St · 6d ago

NVIDIA (NasdaqGS:NVDA) recently announced a partnership with Quantum Machines to advance quantum computing research, which, alongside its acquisition of Lepton AI Inc., may have supported last week's gain of 14%. Additional collaborations, such as with Fluidstack for Exascale clusters and Kasm Technologies for AI Workspaces, highlight NVIDIA's continued expansion in AI and computing. In the broader market, technology stocks have generally trended upward, benefiting from tariff exemptions on tech products, which aligns with NVIDIA's upward price movement. While the market experienced volatility, NVIDIA's strategic actions added weight to the broader positive trend.

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NasdaqGS:NVDA Revenue & Expenses Breakdown as at Apr 2025
NasdaqGS:NVDA Revenue & Expenses Breakdown as at Apr 2025

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The new partnerships and acquisitions announced by NVIDIA, including those with Quantum Machines, Toyota, and Uber, are likely to enhance NVIDIA's position in AI and quantum computing. These initiatives support the broader narrative of NVIDIA's growth in several sectors, including automotive and data centers. The company's focus on Blackwell architecture and AI scalability could drive revenue and margin improvements by positioning NVIDIA to capture a larger share of enterprise infrastructure investments. With analysts forecasting annual revenue growth of 20.4%, these collaborations may bolster projected earnings of around US$159.1 billion by April 2028, as indicated in current forecasts, although margins are expected to face some pressure.

Over the past five years, NVIDIA's total shareholder return, combining share price appreciation and dividends, has been very large, reflecting its significant growth. In comparison to the market, NVIDIA's performance over the past year has exceeded the US Market's return of 4.8%. The share price's recent upward movement aligns with a broader industry trend and NVIDIA's own strategic actions, albeit with regulatory and operational hurdles remaining potential challenges.

With the current share price at US$96.3, the recent rally still places NVIDIA at a substantial discount to the consensus analyst price target of US$169.47, suggesting room for growth if expected earnings and revenue materialize as forecasted. However, investors should consider risks such as regulatory issues and Blackwell system costs that could impact long-term profitability. As NVIDIA continues to expand its technological footprint, the alignment of these developments with future earnings forecasts will be critical in approaching the analyst price target.

Our valuation report unveils the possibility NVIDIA's shares may be trading at a discount.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.