The market reaction to Nvidia’s latest earnings report was lukewarm.
The stock is down after the report as investors respond to what they view as a tepid sales forecast.
But Wall Street sees a lot to like, with many firms raising their price targets on the stock.
For a company like Nvidia, which is used to blowing the doors off earnings reports, Wednesday wasn’t the best day.
While the chipmaking giant beat second-quarter revenue and earnings, the vibes were lukewarm at best, and the move in the stock price showed it.
Shares quickly slid as much as 4% in the after-market before recovering a bit. They remained about 1% lower in regular Thursday trading.
But if there’s anything to worry about, analysts are shrugging it off. The broad consensus across Wall Street is that Nvidia’s earnings report was good enough to unlock further stock upside in the future.
Below is a sampling of this bullish push — five banks that raised their price targets in the immediate aftermath of Nvidia earnings, and why they did so.
JPMorgan: 18% upside
Rating: Overweight
New price target: $215 (up from $170)
Reasoning: JPMorgan sees enough demand for Nvidia’s Blackwell products to support the company’s revenue guidance of $54 billion for the following quarter.
Demand for Nvidia’s H20 chip, meanwhile, could provide as much as $2 billion to $5 billion in extra revenue for the following quarter, analysts estimated, despite uncertainty surrounding US trade restrictions with China.
“Overall, we believe NVIDIA’s 12-month forward order book continues to outstrip supply,” the bank wrote in a client note. “All in, the playbook remains the same here for NVDA – a solid beat and raise with multiple levers at play to drive upside, against the backdrop of a multi-year runway of growth for AI infrastructure spending, with NVDA in our view continuing to capture a significant majority of the incremental spend,” it added.
DA Davidson: 7% upside
Rating: Neutral
New price target: $195 (up from $135)
Reasoning: DA Davidson, which once said it believed 2025 would be a “peak year” in the AI cycle, said it no longer believed that to be the case.
“While we are maintaining our Neutral rating we would like to highlight our perspective on NVDA has shifted quite a bit over the last 6 months,” analysts wrote in a note on Thursday. “We now believe demand growth for inference will sustain for the foreseeable future,” it added, pointing to progress made on AI models over the last year.
Melius Research: 32% upside
Rating: Buy
New price target: $240 (up from $235)
Reasoning: The research firm highlighted Jensen Huang’s comments on Nvidia’s earnings call, where the CEO estimated that capex on data centers could boom to around $3 trillion to $4 trillion by the end of the decade.
The chipmaker also said it saw a $2 trillion total addressable market in the computing and networking business. That could “portend to big numbers” for Nvidia, Melius added, reiterating its forecast that the company’s annual revenue could surpass $600 billion by the end of the decade.
“People will regret focusing on the near-term,” analysts wrote on Thursday. “We reiterate our Buy rating and are still excited about Sovereign and hyperscaler demand driving upside for multiple years,” the firm added, though it noted it was taking out China as part of its estimates for the firm going forward.
Truist Securities: 25% upside
Rating: Buy
New price target: $228 (up from $210)
Reasoning: Nvidia still has “significant growth potential,” Truist analysts wrote, despite the firm’s latest guidance falling slightly below expectations.
“We recognize this as a minor imperfection, and instead focus on management’s resilient longer-term outlook,” the firm said in a note on Wednesday.
The firm highlighted 3 catalysts that could take Nvidia higher over the long run:
Vera Rubin, Nvidia’s next-gen AI chip, is on track to be launched sometime in 2026
Nvidia”gently endorsed” a 50% growth rate next year, which is “well above consensus,” Truist said.
Nvidia’s management also said it saw AI infrastructure potentially reaching $3 trillion to $4 trillion by the end of the decade.
“NVDA remains *the* AI company. Buy,” the note added.
Morgan Stanley: 15% upside
Rating: Overweight
New price target: $210 (up from $206)
Reasoning: Nvidia handily “cleared the bar” with its second-quarter results, despite doubts looming over China, Morgan Stanley said.
In a note to clients, analysts said they believed Nvidia’s earnings-per-share valuation was still supported by improving gross profit margins and demand growth for its products, like the company’s Blackwell ramp.
Nvidia also remains on track to launch its Rubin chip next year, and demand for AI computing is still growing, analysts noted.
“Nvidia has a tendency to rerate quickly when there is a wall of worry to climb; we don’t have that today,” analysts wrote in a note. “It’s easier to make the case for upside when there is a fundamental overhang on the stock, but even without one the financial profile of mid 50s+ % y/y growth in revenue with >60% operating margins will remain attractive as long as beats and raises continue – where our confidence remains high.”
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