Bernstein SocGen raised Nvidia Corp.'s price target to $400 from $315 while maintaining an Outperform rating, citing sustained demand for the chipmaker's data center products. The upgrade follows the company's second-quarter results, which exceeded revenue and earnings estimates.
Nvidia reported second-quarter revenue of $96.2 billion, surpassing market expectations of $92.3 billion, and earnings per share of $2.22, above the $2.09 consensus. Data center revenue reached $7.2 billion, exceeding estimates of $6.6 billion. Bernstein SocGen highlighted a 13% quarter-over-quarter and 102% year-over-year increase in hyperscale customer adoption for the Blackwell platform.
Wall Street firms revised their price targets following the results. KeyBanc reinstated an above-average rating with a $330 target, while JPMorgan raised its target to $320. Melius Research increased its target to $420 with a Buy rating, and Goldman Sachs adjusted its target to $300 with a Neutral rating. Nvidia's market capitalization stands at $5.08 trillion, trading at a price-to-earnings ratio of 32.3x.
The data center segment, driven by Blackwell and Rubin architectures, continues to expand rapidly. Mizuho projects fiscal 2028 data center revenue could reach approximately $700 billion, with Rubin expected to contribute around 20% of segment revenues. KeyBanc noted a 117% year-over-year increase in Q2 data center revenue, while ACIE customers grew 25% quarter-over-quarter and 138% year-over-year.
For the current quarter, Nvidia guided revenue to $108.0 billion, above the $104.6 billion estimate, and projected earnings per share of $2.46, exceeding the $2.36 consensus. Gross margins are expected to decline to 71-72% in Q4 before recovering to 72-73% in 2027 as pricing adjustments take effect.
