Truist Securities raises Nvidia stock price target to $228 on AI growth

Published 28/08/2025, 05:30
© Reuters.

Investing.com - Truist Securities raised its price target on Nvidia (NASDAQ:NVDA) to $228.00 from $210.00 on Thursday, while maintaining a Buy rating on the semiconductor company. The semiconductor giant, currently valued at $4.43 trillion, has demonstrated remarkable momentum with a 45.4% price return over the past six months. According to InvestingPro analysis, the stock is trading near its 52-week high of $184.48.

The price target increase comes despite what the research firm described as sales results and guidance that were "slightly below buy-side expectations," which it characterized as a "minor imperfection." While the stock trades at a relatively high P/E ratio of 57.8x, InvestingPro data shows the company maintains excellent financial health with strong profitability metrics.

Truist instead highlighted management’s "resilient longer-term outlook," noting that Nvidia’s Vera-Rubin chip is taped out and on track for 2026 release, and that company executives endorsed a view of approximately 50% growth next year, which stands well above current consensus estimates.

The research firm also pointed to management’s projection of a roughly 50% compound annual growth rate in the AI infrastructure total addressable market, which could reach $3-4 trillion by 2030.

Truist raised its calendar year 2026 earnings per share estimate for Nvidia to $6.50 from $5.99, and based its new price target on a 35x multiple, which represents twice the premium to peers, referring to Nvidia as "the AI company."

In other recent news, Nvidia reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share of $1.04 compared to the forecasted $1.01. The company’s revenue also exceeded predictions, reaching $46.7 billion against an anticipated $46.1 billion. Piper Sandler reiterated its Overweight rating on Nvidia stock, maintaining a price target of $225, following the company’s strong earnings report and optimistic October quarter guidance. This guidance suggested potential revenue of $54 billion, not accounting for any income from Nvidia’s H20 chips, which could represent additional upside. Nvidia also indicated a potential revenue generation of between $2 billion and $5 billion in China during the current quarter. Meanwhile, DA Davidson raised its price target on Nvidia to $195 from $135, maintaining a Neutral rating. This decision came after Nvidia’s mixed results for the second quarter of fiscal 2026, particularly noting slightly lower-than-expected data center revenue. Concerns remain about Nvidia’s ability to sell H200 chips in China, which has influenced sentiment around the results.

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