Bernstein SocGen increased its price target on Nvidia to $400 from $315 while maintaining an Outperform rating, citing sustained demand for artificial intelligence chips.
The upgrade follows Nvidia’s second-quarter results, which showed revenue of $96.2 billion, exceeding the $92.3 billion consensus estimate. Earnings per share reached $2.22, above the $2.09 forecast. Datacenter revenue climbed 102% year-over-year to $38.4 billion, driven by Blackwell platform momentum and hyperscale customer growth of 13% quarter-over-quarter.
Edge computing revenue rose to $7.2 billion, surpassing the $6.6 billion estimate. Analysts at KeyBanc reported a 117% year-over-year increase in data center revenue for the quarter, while Mizuho highlighted a similarly strong outlook for the October quarter with revenue guidance of $108 billion.
Nvidia’s market capitalization has expanded to $5.08 trillion, with a trailing P/E ratio of 32.3. Bernstein SocGen noted the company’s strong balance sheet enables it to secure critical components and support its ecosystem. Ten analysts have revised earnings estimates upward in recent weeks, according to InvestingPro, which also indicates the stock remains undervalued relative to its fair value.
For the current quarter, Nvidia guided revenue to $108 billion with earnings per share of $2.46, both above Street expectations. Datacenter revenue is projected to exceed $100 billion by fiscal 2028, representing roughly 20% of segment sales amid the ramp of the Rubin platform. Gross margins are expected to peak at 74% in the third quarter before moderating to 71-72% in the fourth quarter and stabilizing at 72-73% next year as pricing adjustments take effect.
Other firms have also adjusted their targets: JPMorgan raised its price target to $320, while Melius Research lifted its target to $420 and maintained a Buy rating. Goldman Sachs set its target at $300 with a Neutral rating, and KeyBanc reiterated an Overweight rating with a $330 target.
