① Following NVIDIA's release of financial results that comprehensively exceeded expectations, Wall Street investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, have raised their target prices for the AI chip giant; ② At the opening of U.S. stock trading on Thursday, NVIDIA's share price surged, rising more than 6% as of press time; ③ According to data compiled by LSEG, at least 10 investment banks have raised their target prices for the stock following NVIDIA's earnings announcement.
In$NVIDIA (NVDA.US)$Following the release of financial results that comprehensively exceeded expectations, Wall Street investment banks have intensively raised their target prices for this AI chip giant.
After U.S. markets closed on Wednesday, NVIDIA released its financial results for the second quarter of fiscal year 2027. Driven by strong demand in the AI sector, NVIDIA's revenue for the second fiscal quarter reached $96.2 billion, a 106% year-on-year increase, surpassing the market consensus expectation of $91.9 billion. Adjusted earnings per share were $2.22, up 120% year-on-year, also exceeding Wall Street's expectation of $2.08.
NVIDIA's core data center business continues to accelerate its growth, with revenue rising 117% to $89.0 billion. Within this segment, both the hyperscale cloud and ACIE (AI Cloud, Industrial, and Enterprise) sectors achieved growth exceeding 100%.
For the third fiscal quarter, NVIDIA provided an optimistic revenue guidance of $108.0 billion.
To the pleasant surprise of the market, NVIDIA raised its revenue growth guidance for fiscal year 2028 to approximately 70%, far exceeding the market consensus expectation of 45%. This marks the first time the company has provided performance guidance one year in advance.
The aforementioned performance and guidance fully demonstrate NVIDIA's central position in the global wave of AI spending and indicate that the spending boom in the artificial intelligence sector remains robust, reigniting bullish sentiment.
At the opening of U.S. stock trading on Thursday, NVIDIA's share price surged by more than 6%.
Target Prices See Intensive Upward Revisions
Following the earnings release, Wall Street investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, have successively raised their target prices for NVIDIA.
According to data compiled by the London Stock Exchange Group (LSEG), at least ten investment banks raised their price targets for NVIDIA following its earnings release.
Goldman Sachs raised its price target for NVIDIA from $285 to $300, while reaffirming its Buy rating on the stock.
Goldman Sachs analyst James Schneider stated that the firm expects NVIDIA's stock to maintain its upward momentum following strong quarterly results, with its fiscal 2027 guidance significantly exceeding market expectations. Although recent upward revisions to capital expenditure forecasts by major cloud service providers had already heightened market expectations, this guidance aligns with the most optimistic scenarios among buy-side investors.
Goldman Sachs believes the path for NVIDIA's stock to outperform the broader market in the coming months has become increasingly clear, and is confident that NVIDIA can further exceed expectations beyond the revised 70% growth forecast for calendar year 2027.
JPMorgan raised its price target for NVIDIA from $280 to $320, while maintaining an Overweight rating. This adjustment was primarily driven by NVIDIA's second-quarter results and third-quarter revenue outlook, both of which surpassed Wall Street expectations.
Morgan Stanley raised its price target for NVIDIA from $288 to $300. The firm believes that NVIDIA's recently launched revenue-sharing model for cloud computing could serve as a new catalyst for the stock's upside.
Melius Research raised its price target for NVIDIA from $400 to $420, while maintaining a Buy rating. The firm noted that although NVIDIA's gross margin declined from the previous level of 75%, the company expects revenue growth to remain above 70% next year.
Mizuho Securities raised its price target for NVIDIA from $300 to $315, while maintaining an Outperform rating. The firm stated that it expects NVIDIA to continue maintaining its leadership position in the AI GPU sector.
Royal Bank of Canada raised its price target for NVIDIA from $300 to $330.
Bank of America Securities reaffirmed its Buy rating for NVIDIA following the earnings release, while keeping its price target unchanged at $350.
The bank raised its fiscal 2028 earnings per share (EPS) forecast for NVIDIA by 19% to $15.72, and increased its fiscal 2029 EPS forecast to $23.17. Additionally, the bank now expects NVIDIA's calendar year 2030 EPS to exceed $31, up from the previous estimate of $25.
Furthermore, KeyBanc reaffirmed its overweight rating on NVIDIA, maintaining a price target of $330.
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