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Investing.com - UBS raised its price target on Nvidia (NASDAQ:NVDA) to $205.00 from $175.00 on Thursday, maintaining a Buy rating ahead of the company’s fiscal second-quarter earnings report. The semiconductor giant, currently trading near its 52-week high with a market cap of $4.27 trillion, has demonstrated remarkable growth with revenue surging 86% over the last twelve months. InvestingPro data reveals 20+ additional key insights about NVDA’s valuation and growth metrics.
UBS projects Nvidia’s FQ2 (July) revenue will reach approximately $46 billion, representing a beat of about $1 billion similar to the previous quarter. For FQ3 (October), the firm expects revenue guidance of $54-55 billion excluding China, or potentially up to $57 billion if China is included. According to InvestingPro analysis, NVDA maintains a "GREAT" financial health score of 3.71, with the company’s next earnings report scheduled for August 27, 2025.
The firm’s supply chain research indicates Nvidia’s compute segment could grow 20-25% quarter-over-quarter from a base of approximately $35 billion in FQ2, potentially adding $7-8 billion in compute revenue for FQ3.
UBS anticipates networking revenue could reach approximately $6 billion for FQ3, an increase of nearly $1 billion quarter-over-quarter, despite some supply chain reports of shortages at 800G. This suggests total data center revenue of around $49 billion for FQ3, while gaming faces tougher comparisons following a strong FQ1.
Regarding China, UBS believes Nvidia placed new Hopper wafer orders after receiving H20 license news and is likely developing a Blackwell version for the Chinese market, as the US government potentially increases allowable technology exports to China.
In other recent news, Nvidia is set to announce its fiscal second-quarter earnings on August 27, with significant attention from analysts. Oppenheimer has reiterated an Outperform rating on Nvidia, projecting potential upside to consensus estimates for sales and earnings per share, forecasting $45.8 billion and $1.00, respectively. KeyBanc also raised its price target for Nvidia to $215, maintaining an Overweight rating, and anticipates strong second-quarter results but notes potential third-quarter guidance challenges due to uncertainties in direct revenue from China.
Meanwhile, HSBC increased its price target to $200 from $125, citing a larger-than-expected market for AI GPUs driven by increased cloud service provider expenditures and expanding AI markets. Deutsche Bank (ETR:DBKGn) has kept a Hold rating on Nvidia with a $155 price target, ahead of the earnings report. The upcoming earnings release is part of a series of events, including the Jackson Hole Symposium and non-farm payrolls data, which JPMorgan strategists believe will significantly impact U.S. equity markets.
These developments reflect a keen interest in Nvidia’s performance and future prospects, especially in the context of AI growth and geopolitical factors.
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