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Investing.com - Wells Fargo has raised its price target on Nvidia (NASDAQ:NVDA) to $265.00 from $220.00 while maintaining an Overweight rating on the stock.
The price target increase reflects Wells Fargo’s updated outlook for Nvidia’s future performance, particularly in its data center business, which is benefiting from continued momentum in hyperscale capital expenditure.
Wells Fargo has revised its fiscal year 2027 and 2028 estimates upward, now projecting FY26 revenue of $209.2 billion with earnings per share of $4.61, FY27 revenue of $301.6 billion with EPS of $7.05, and FY28 revenue of $383.2 billion with EPS of $8.90.
The firm specifically increased its data center revenue estimates, forecasting $186.6 billion for FY26 (representing 62% year-over-year growth), $276.4 billion for FY27 (48% growth), and $356.5 billion for FY28 (29% growth).
Wells Fargo maintained a consistent calendar year 2027 price-to-earnings multiple of approximately 30x in its valuation model, citing Nvidia’s strong growth trajectory and leading position in the data center and artificial intelligence markets.
In other recent news, Nvidia is gearing up for its upcoming fiscal third-quarter earnings report. Analysts have shown optimism, with KeyBanc maintaining an Overweight rating and a $250 price target, expecting strong results and higher guidance for the January quarter. Oppenheimer has raised its price target to $265, maintaining an Outperform rating, and sees potential upside to consensus expectations of $54.7 billion in sales and $1.25 earnings per share. Susquehanna also increased its price target to $230, citing strong AI demand and increased capital expenditure plans among major hyperscalers. Meanwhile, AI coding tool maker Cursor has raised $2.3 billion in funding at a $29.3 billion valuation, marking a significant increase since January. Microsoft is expanding its data center footprint with a new AI "super factory" in Atlanta, which will feature Nvidia graphics processing units. This development is part of Microsoft’s plan to double its data center capacity over the next two years. These recent developments highlight the ongoing growth and investment in AI technology across the industry.
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