Nvidia Corp.'s stock price target was raised to $420 from $400 by Melius Research, which maintained a Buy rating on the shares after the chipmaker reported accelerating revenue growth and raised its outlook. The new target represents a valuation of roughly 20 times Melius's fiscal 2029 earnings per share estimate of $21.11.
The upgrade follows Nvidia's fiscal second-quarter results, which showed revenue of $96.2 billion, more than doubling from the prior year and exceeding the $91.9 billion consensus estimate. Adjusted earnings per share came in at $2.22, above Wall Street's forecast of $2.08. The company also projected October quarter revenue of $108 billion, marking the fourth consecutive quarter of sequential growth.
Nvidia guided for revenue growth to exceed 70% in the next fiscal year, following a 71% increase over the last twelve months. Gross profit margins stood at 74%, down slightly from 75% previously. The company also reported purchase commitments rising 134% quarter-over-quarter to $279 billion, covering 10 quarters of cost of goods sold at the fiscal third quarter 2027 run rate. Total commitments reached $366 billion, primarily reflecting memory needs.
Melius projects Nvidia could achieve earnings per share of more than $20 within two years and capture over 50% share of a $2 trillion total addressable market before 2030. The firm also noted Nvidia plans to return over 60% of free cash flow to shareholders, with buyback activity expected to increase next year.
Other analysts adjusted their targets as well. Mizuho raised its price target to $315, while KeyBanc maintained an Overweight rating with a $330 target. JPMorgan increased its target to $320, and BofA Securities reiterated a Buy rating with a $350 target. Mizuho also projected fiscal 2028 revenue of approximately $700 billion, and BofA adjusted its fiscal 2028 earnings per share estimate to $15.72.
