Piper Sandler has raised Nvidia’s price target from $180 to $225, anticipating a 23% upside ahead of its Q2 earnings report.
Nvidia Price Forecast
Piper Sandler maintained an overweight rating on Nvidia shares. Analyst Harsh Kumar expects another solid quarter, indicating that their models are in line for July and slightly below Street estimates for October. However, he believes that the numbers will be strong due to demand from U.S. hyperscalers and renewed sales from China.
Q2 Report Expectations
Analysts expect Nvidia to report $1 in non-GAAP EPS and $45.76 billion in revenue, a significant increase from last year's $0.68 EPS and $30.04 billion in revenue in the same period. The company’s own guidance for Q2 is about $45 billion, factoring in the issues from previously frozen H20 GPU sales to China.
Company Prospects and New Technologies
The main concern revolves around Nvidia’s new GB200 and NVL systems, which are high-priced and complex to deliver. Demand from major tech companies continues to surge, with Google raising its full-year AI capex to $85 billion, while Microsoft anticipates spending $30 billion in Q3 alone. Interest in expanding the use of Nvidia’s software and monetizing its AI Enterprise remains strong.
Overall, analysts maintain an optimistic outlook for Nvidia, expecting significant gains in the second quarter driven by strong demand and improved supply conditions in China.
