Webull beats Q3 expectations as revenue jumps 55% on strong trading
Investing.com - UBS has reiterated its Buy rating and $235.00 price target on Nvidia (NASDAQ:NVDA) following the chipmaker’s latest financial guidance, which exceeded analyst expectations. With a current market capitalization of $4.7 trillion, Nvidia is trading at a P/E ratio of 53.13, which InvestingPro data shows is actually low relative to its near-term earnings growth potential.
UBS noted that Nvidia’s guidance was "very solid" and better than the firm’s projection of $63-64 billion, with demand commentary addressing market concerns about a potential bubble in AI spending. The firm projects Nvidia could achieve $350-400 billion in revenue and over $9 in earnings per share for calendar year 2026. This ambitious projection aligns with Nvidia’s impressive 71.55% revenue growth over the last twelve months, according to InvestingPro data.
The research firm highlighted that Nvidia’s "supply" grew by approximately $25 billion quarter-over-quarter to around $70 billion, while the company is guiding for fourth-quarter revenue of $65 billion. UBS interprets this as an indication Nvidia could achieve $75-80 billion in first-quarter fiscal 2027 revenue, significantly ahead of current Street estimates. This optimistic outlook is supported by InvestingPro data showing 16 analysts have recently revised their earnings upward for upcoming periods.
UBS has increased its earnings estimates for Nvidia to approximately $8.70 for calendar year 2026 and $11 for 2027, compared to Street consensus of about $8.50 for 2027. The firm maintains that these projections support its $235 price target, even assuming the stock will trade at "a low 20x multiple." Notably, Nvidia’s PEG ratio of 0.81 suggests the stock may be undervalued relative to its growth rate, despite its seemingly high P/E ratio.
The firm concluded that Nvidia appears to be "tightening its grip on broadly enabling AI across modalities and industries" as the AI infrastructure market continues its rapid expansion. Nvidia’s analyst consensus recommendation stands at 1.33 (Strong Buy), with price targets ranging from $140 to $350, reflecting strong confidence in the company’s dominant position in the semiconductor industry. For deeper insights into Nvidia’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Nvidia reported quarterly earnings that surpassed market expectations, delivering a $2 billion upside for its third quarter. The company also provided guidance nearly $3 billion ahead of consensus estimates, signaling robust future performance. Following these results, several analyst firms adjusted their outlooks for Nvidia. Benchmark raised its price target to $250, maintaining a Buy rating, while TD Cowen reiterated its Buy rating with a $235 price target, citing strong AI demand. Cantor Fitzgerald also maintained an Overweight rating and a $300 price target, noting Nvidia’s January quarter revenue guidance of approximately $65 billion, slightly above market expectations. Deutsche Bank increased its price target to $215 from $180, maintaining a Hold rating, highlighting Nvidia’s impressive performance in its Data Center segment. In related developments, Authid Inc announced its participation in the NVIDIA Connect Program, aiming to enhance its AI security architecture with access to Nvidia’s AI and machine learning frameworks. These recent developments underscore Nvidia’s strong position in the AI and semiconductor markets.
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