Nvidia stock price target raised to $225 from $195 at Baird on GB200 momentum

Investing.com - Baird raised its price target on Nvidia (NASDAQ:NVDA) stock to $225.00 from $195.00 on Monday, maintaining an Outperform rating, citing "significant acceleration in GB200 sell-through shipments in July." The semiconductor giant, currently valued at $4.34 trillion, has demonstrated remarkable growth with revenue surging 86% year-over-year.

The research firm expects ongoing shipment momentum for Nvidia’s products, with xAI shipments weighted toward the fourth fiscal quarter. Baird also noted that its initial 2026 outlook for TSMC’s CoWoS-L capacity is expected to nearly double year-over-year. With an impressive gross margin of 70.11%, InvestingPro data shows Nvidia maintains strong profitability while scaling operations.

According to Baird, Nvidia’s GB300 remains on track for an initial late September launch and represents a significant performance improvement over GB200. The new product has been sampling for the past few months to key data center ODMs with no system-level implementation issues reported.

The firm believes the AI GPU competitive landscape remains "very favorable" to Nvidia for the second half of this year and next year. Baird also highlighted that Nvidia’s Spectrum-X is gaining continued traction at new public cloud data centers, along with xAI and Meta.

Baird further noted that Nvidia’s Cloud Partners initiative is rapidly expanding, targeting enterprise private clouds for GPU as a service and AI as a service, while ConnectX-8 is targeting 80-90% market share in AI servers.

In other recent news, Nvidia introduced its Spectrum-XGS Ethernet technology, designed to connect geographically dispersed data centers into unified AI computing facilities. This new technology aims to address capacity constraints faced by individual data centers, allowing them to function as a single system despite being located in different regions. Stifel raised its price target for Nvidia to $212 from $202, maintaining a Buy rating. The firm anticipates Nvidia to exceed expectations and raise its guidance, citing resumed H20 shipments and increasing demand for GB300 infrastructure. Evercore ISI also increased its price target for Nvidia to $214 from $190, maintaining an Outperform rating. The firm noted Nvidia’s current trading valuation relative to its historical median and compared it to peers like AMD and Broadcom. Additionally, Bernstein upgraded Ibiden to Outperform, highlighting its potential as a significant beneficiary of growth in AI chip substrates used in Nvidia’s GPUs. These developments reflect growing interest and investment in AI-related technologies.

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