Nvidia’s Stock ‘Attractively Valued’ as Price Targets Rise Ahead of Earnings

NVIDIA's stock (NASDAQ: NVDA) is drawing increased attention from financial analysts who are revising their price targets upward ahead of the company's fiscal Q2 earnings report, scheduled for release on August 27.

The positive adjustments reflect a growing consensus that NVIDIA is poised to exceed expectations, driven by robust demand for its AI and data center products.

Stifel

Stifel has increased its price target on NVIDIA to $212 from $202, reaffirming a “Buy” rating on the shares. Their analysis anticipates a earnings beat, fueled by the resumption of H20 chip shipments in July and accelerating demand for the GB300 infrastructure. Supply chain checks suggest that GB300 orders are expected to ramp up towards the end of the year, while demand for GB200 products remains strong. Stifel maintains that NVIDIA shares are attractively valued, considering these factors.

Baird

Baird raised their price target from $195 to $225, holding an “Outperform” rating. The firm point to an expected acceleration in GB200 sell-through, and increased revenue and earnings estimates as reasons for the revision. Momentum is also expected to remain strong with the late September launch of GB300.

Morgan Stanley

Morgan Stanley has also reiterated its “Overweight” rating on NVIDIA, raising the price target to $206 from $200. Their optimism stems from NVIDIA's dominant position in the AI market and its robust product offerings, positioning the company to capitalize on the increasing demand for AI infrastructure.

Wedbush

Wedbush analyst Matt Bryson has increased Nvidia's price target from $175 to $210, maintaining an “Outperform” rating. Bryson anticipates that NVIDIA will report strong earnings and provide optimistic guidance for the upcoming quarter, driven by accelerating demand for AI-related products. He highlights NVIDIA's leadership in the AI space and expects the company to continue benefiting from this trend.

Bank of America Securities

Bank of America Securities has maintained its “Buy” rating and a price target of $220 for NVIDIA ahead of the company's second-quarter earnings report. The firm expects NVIDIA to report second-quarter sales of $47 billion, exceeding both the consensus estimate of $45.8 billion and the company's guidance of $45 billion. This optimism is driven by the continued ramp-up of the Blackwell architecture and robust cloud spending.

KeyBanc & HSBC

KeyBanc ($215 from $190) and HSBC have also upgraded their price targets for NVIDIA, reflecting confidence in the company's performance. The upgrades are predicated on strong demand for NVIDIA's AI and data center products, as well as the company's effectiveness in navigating supply chain challenges.

The collective sentiment among analysts suggests that NVIDIA is well-positioned to benefit from several key factors: the resumption of H20 shipments, accelerating demand for GB300 infrastructure, and its overall leadership in the AI market.

We can expect plenty of coverage this week as NVDA heads into earnings, and most likely, there will be analyst revisions off the back of the print if there is any meaningful variance in what the firm delivers against expectations. Expectations are high, and Nvidia usually delivers, but just how close to perfection is the stock priced at leading in? Hold on tight, it will be a busy week, and this one could well have a say of broader market sentiment.