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Investing.com - Oppenheimer has reiterated an Outperform rating and $200.00 price target on Nvidia (NASDAQ:NVDA), currently trading at $175.40 and near its 52-week high of $184.48, ahead of its earnings report on Wednesday, August 27. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.71, with 20+ additional insights available to subscribers.
The firm anticipates potential upside to consensus estimates for Nvidia’s fiscal second quarter (July) sales and earnings per share of $45.8 billion and $1.00, respectively, as well as fiscal third quarter (October) projections of $52.8 billion and $1.19. This optimism appears well-founded, as the company has demonstrated remarkable revenue growth of 86.17% over the last twelve months.
Oppenheimer notes that Nvidia’s NVL72 rack-scale solution is in full ramp with cloud service providers, while the top four hyperscalers have increased their 2025 capital expenditure to $365 billion, up 64% from the previous estimate of $325 billion, representing a 46% increase.
The firm estimates China represents less than 5% of sales in their model following the April China H20 ban, with an estimated H20 backlog exceeding $16 billion when the ban took effect. Nvidia recently received an export license for H20 GPUs, which requires a 15% payment to the U.S. government on sales, an amount Oppenheimer expects to be offset by price increases.
Oppenheimer forecasts gross margins to remain in the mid-70% range for the foreseeable future, with a smooth third-quarter GB300 (Ultra) refresh expected, and maintains that Nvidia remains best positioned to win in the artificial intelligence sector.
In other recent news, Nvidia has been the focus of several analyst updates ahead of its upcoming earnings report. TD Cowen raised its price target for Nvidia to $235 from $175, maintaining a Buy rating, citing strong fundamentals and a seamless transition between its product lines. KeyBanc also increased its price target to $215 from $190, while expecting strong second-quarter results but cautioning about potential third-quarter guidance due to uncertainties in revenue from China. HSBC adjusted its price target to $200 from $125, maintaining a Hold rating, driven by a larger-than-expected market for AI GPUs. Deutsche Bank (ETR:DBKGn) reiterated a Hold rating with a $155 price target as Nvidia prepares to release its fiscal second-quarter 2026 earnings. These developments reflect a mix of optimism and caution among analysts regarding Nvidia’s performance and market conditions.
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