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On Thursday, Melius Research analyst Ben Reitzes increased the price target for NVIDIA stock to $205 from $195, while reaffirming a Buy rating on the company’s shares. This target falls within the broader analyst range of $100 to $220, with the consensus remaining strongly bullish at 1.48 (Strong Buy). Reitzes expressed optimism about NVIDIA’s prospects, highlighting several factors that contribute to a positive outlook for the company. According to InvestingPro, NVIDIA boasts a perfect Piotroski Score of 9, indicating exceptional financial strength.
The analyst pointed out that NVIDIA’s guidance outside of China for the second fiscal quarter suggests demand that exceeds expectations by $2-3 billion, indicating strong real demand in major cloud services and gaming, particularly for the new Blackwell-based products. This aligns with the company’s impressive revenue growth of 114.2% over the last twelve months. Additionally, Reitzes anticipates NVIDIA’s gross margins will return to the mid-70% range in the second half of fiscal year 2026, consistent with their current robust gross profit margin of 75%, which should bolster the company’s long-term earnings potential. For deeper insights into NVIDIA’s financial health metrics and growth potential, InvestingPro offers comprehensive analysis with 18 additional exclusive ProTips.
Another positive development noted by Reitzes is the improved tone from NVIDIA compared to the sentiment at the GPU Technology Conference (GTC) in March. This change is attributed to the reversal of the AI Diffusion rule and the stimulation of significant sovereign AI demand by former President Trump, with expectations of more announcements to follow.
Reitzes also mentioned that there is a belief that the $8 billion in quarterly revenue NVIDIA previously earned from China’s AI market is not permanently lost. He suggested that the U.S. administration might evaluate how an American company like NVIDIA can continue to serve the Chinese market, thereby preventing half the world’s AI developers from relying on a Chinese platform.
In summary, Reitzes reaffirmed the Buy rating for NVIDIA and expressed enthusiasm about the company’s potential for sustained demand from sovereign and hyperscaler clients. He adjusted the firm’s estimates upward and set a new price target of $205, signaling confidence that NVIDIA can overcome regulatory concerns and continue to thrive. With a market capitalization of $3.29 trillion and an "EXCELLENT" financial health score from InvestingPro, NVIDIA remains a dominant force in the semiconductor industry. Discover comprehensive valuation metrics, growth projections, and expert analysis in NVIDIA’s Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, NVIDIA Corporation (NASDAQ:NVDA)’s financial performance and outlook have attracted significant attention from multiple analysts. Morgan Stanley (NYSE:MS) raised its price target for NVIDIA to $170, citing increased revenue estimates for fiscal years 2026 and 2027, along with improved gross margins. Stifel maintained a Buy rating with a $180 target, noting that NVIDIA’s first-quarter performance exceeded expectations despite a $2.5 billion revenue shortfall related to the H20 product line. Evercore ISI also kept an Outperform rating with a $190 target, highlighting a 73% year-over-year growth in the data center business and expectations for the next-generation Blackwell chip.
JPMorgan reiterated its Overweight rating and a $170 target, acknowledging NVIDIA’s April-quarter revenue of $44 billion, which surpassed both their and consensus estimates. Despite challenges, NVIDIA’s networking segment saw significant growth, and the company is expected to maintain its competitive edge with rapid product launches. Citi analysts increased NVIDIA’s price target to $180, following strong sales of the Blackwell product line and a positive outlook for gross margins. The firm anticipates potential catalysts for NVIDIA’s stock from upcoming events and discussions around AI factories, which could represent substantial data center opportunities.
These developments underscore NVIDIA’s strong market position and the confidence analysts have in the company’s future growth and financial performance.
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