Stifel raises Nvidia stock price target to $212 from $202 on AI strength

Investing.com - Stifel raised its price target on Nvidia (NASDAQ:NVDA) stock to $212 from $202 on Monday, maintaining a Buy rating ahead of the company’s fiscal second-quarter results due August 27. The stock currently trades at $177.99, near its 52-week high of $184.48, with a P/E ratio of 56.8.

The firm expects Nvidia to beat expectations and raise guidance, citing resumed H20 shipments in July and accelerating demand for GB300 infrastructure. With impressive revenue growth of 86.17% and a robust gross margin of 70.11%, supply chain discussions indicate ramping GB300 orders into year-end alongside sustained GB200 demand. InvestingPro analysis reveals 20+ additional key metrics and insights available for deeper research.

Stifel identified three key investor debates: hyperscaler demand sustainability amid "AI bubble" concerns and reports of an underwhelming GPT-5 launch, potential impacts from China export restrictions, and possible margin pressure during early GB300 production ramps.

The firm believes Nvidia’s leadership in AI infrastructure remains unchallenged, with GB300 specifications offering 50% higher FP4 performance that should remain best-in-class as inference and reasoning complexity increases.

Stifel views Nvidia shares as attractively valued given the company’s continued AI leadership position in the market.

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 enhances Nvidia’s existing platform by allowing data centers to operate as a single system, addressing capacity constraints. Meanwhile, Evercore ISI has raised its price target on Nvidia to $214 from $190, maintaining an Outperform rating. UBS also increased its price target to $205 from $175, citing growth in Nvidia’s data center segment. UBS projects Nvidia’s fiscal second-quarter revenue to reach approximately $46 billion, with third-quarter guidance potentially reaching up to $57 billion if China is included.

Oppenheimer reiterated an Outperform rating with a $200 price target, expecting potential upside to consensus estimates for the company’s fiscal second-quarter sales and earnings. Analysts anticipate second-quarter sales of $45.8 billion and earnings per share of $1.00. Additionally, Bernstein upgraded Ibiden Co Ltd. to Outperform, identifying it as a significant beneficiary of growth in AI chip substrates used in Nvidia’s GPUs. These developments highlight the ongoing interest and positive outlook for Nvidia in the technology sector.

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