Analysts at UBS raised their price target for NVIDIA (NVDA) to $150 from $120 per share in a note Monday, reiterating a Buy rating on the stock, citing positive recent supply checks.
The bank's recent supply chain checks confirmed their prior suspicions that demand momentum for Blackwell rack-scale systems "remains exceedingly robust."
"We now believe EPS of ~$5 could be doable for C2025 as the order pipeline for NVL72/36 systems is materially larger than just two months ago as hyperscaler budgets for C2025 firm up," writes the bank.
"This comes as sentiment on the stock - though still strong - has faded somewhat in recent weeks, creating more of a 'wall of worry' that should be ultimately healthy if our outlook materializes," they add.
UBS notes that even though its estimates have consistently been well ahead of Street, they are even now still baking in a gap to what is being suggested by the supply chain, raising its CY25 revenue/EPS estimates for Nvidia (NASDAQ:NVDA) by 12%/15% to $204 billion/$4.95, far above the sell-side consensus of $161 billion/$3.62.
"Given all of this, we believe a $150 PT can be supported (prior $120), and we maintain our Buy rating as we roll our valuation basis forward from C2025 EPS to an average of C2025/C2026 (which we model flattish at this point given visibility that is still a bit limited," the bank concludes.