Veriton Investment

Nvidia Analysts Look Past Tepid Outlook, Lift Price Targets

(Bloomberg) -- Analysts are staying bullish on Nvidia Corp., boosting price targets even as the world’s most valuable company offered a forecast that underwhelmed investors.

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Citing the chip giant’s longer-term prospects, at least 10 firms hiked their 12-month price targets after its results Wednesday, raising the average by 3% to $202.60, according to data compiled by Bloomberg. That implies a gain of about 12% from Wednesday’s close.

JPMorgan Chase & Co. analysts led by Harlan Sur cited a ramp up in the firm’s Blackwell AI chips. “We believe Nvidia’s 12-month forward order book continues to outstrip supply,” he noted, reinstating his Overweight rating on the stock and lifting his price target 26% to $215.

Nvidia gave a tepid revenue forecast for the current period, projecting sales will be roughly $54 billion in the fiscal third quarter. Though that was in line with the average Wall Street estimate, some analysts had projected more than $60 billion.

While noting sales results and guidance “were both slightly below buyside expectations,” Truist Securities analyst William Stein raised his target by 9% to $228. “We recognize this as a minor imperfection, and instead focus on management’s resilient longer-term outlook,” he said.

Shares in Nvidia briefly erased earlier premarket losses to turn positive after Jensen Huang spoke with Fox News about selling Blackwell AI chips to China and giving the US a cut of those sales.

Wall Street remains overwhelmingly bullish on the stock, with 72 buy-equivalent ratings. Only seven analysts have a hold rating and the stock has a sole sell rating, according to data compiled by Bloomberg.

Shares in the Santa Clara, California-based company had rallied about 35% since it reported first quarter results in May — adding more than $1 trillion to its market capitalization in the period.

While expectations were high coming into the earnings, most important boxes were checked, Morgan Stanley analyst Joseph Moore wrote.

Still, there is also little clarity when it comes to China. Though the Trump administration recently eased curbs on exports of some AI chips to that country, the reprieve hasn’t yet translated into a rebound in revenue.

“China remains impossible to forecast, and management seemed cautious about prospects to resolve the issues,” Moore, who raised his target to to $210 from $206, said.

(Updates stock move and adds Fox report on Jensen Huang in sixth paragraph)