Rosenblatt Securities raised its price target for Nvidia Corp. to $390 from an undisclosed prior level on Thursday, maintaining a Buy rating. The new target is based on a 25 times multiple applied to fiscal 2028 non-GAAP earnings per share estimates.
The upgrade follows a series of upward revisions from peers. Stifel lifted its target to $315 while maintaining a Buy rating, Bernstein SocGen raised its target to $400 with an Outperform rating, and Goldman Sachs increased its target to $300 while keeping a Neutral rating.
Nvidia’s fiscal 2028 guidance calls for revenue growth of 70% year-over-year, exceeding consensus estimates of roughly 45%. The company also reported a 106% year-over-year increase in second-quarter revenue to $96.2 billion, surpassing analyst expectations of $92.2 billion. Adjusted earnings per share reached $2.22, above the $2.09 consensus. Third-quarter revenue is projected at $108 billion, about 3% above consensus.
The company increased multi-year purchase commitments by approximately 135% quarter-over-quarter to $279 billion, primarily for memory components. Gross profit margin remained industry-leading at 74%, while year-to-date shareholder returns totaled $26 billion, composed of $20 billion in buybacks and $6 billion in dividends, representing 60% of free cash flow.
Management highlighted the ACIE segment, covering AI clouds, industrial, enterprise, and sovereign customers, as a key growth driver expected to outpace hyperscaler growth over the longer term. The newly launched Vera Rubin architecture is projected to account for 20% of third-quarter fiscal 2027 data center revenue, marking the fastest product ramp in company history with progressive compute-per-watt gains.
InvestingPro data shows Nvidia’s PEG ratio at 0.29, and the stock is featured among the publication’s most undervalued equities.
Additional market context included strong demand signals from Coherent Corp. for optical components and a 283% year-over-year revenue increase at China-based MiniMax in the first half of the year, with enterprise and API revenue up 703% and accounting for 63% of total revenue.
