Stifel increased its price target on Nvidia Corp. to $315 from $282, maintaining a Buy rating as the chipmaker reported strong second-quarter results and issued its first full-year revenue forecast.
The upgrade follows Nvidia’s fiscal Q2 revenue of $96.2 billion, up 106% year-over-year and ahead of the $92.2 billion consensus estimate. Adjusted earnings per share reached $2.22, beating the $2.09 forecast. The company also guided third-quarter revenue to $108 billion, roughly 3% above expectations.
Nvidia’s full-year outlook projects fiscal 2028 revenue growth of approximately 70%, with management indicating demand could support up to 100% growth despite ongoing supply constraints. Gross margin guidance was reset to 72%-73%, attributed to memory cost pass-through rather than pricing erosion. Price increases are set to take effect in the first quarter of fiscal 2028, with about $350 billion in supply commitments converting cost exposure into volume firmness.
Stifel’s $315 target trails higher revisions from peers: Bernstein SocGen Group raised its target to $400 with an Outperform rating, while Melius Research set its target at $420. Goldman Sachs lifted its target to $300 but maintained a Neutral rating.
Nvidia’s datacenter growth remains a key driver, with hyperscale customers rising 13% quarter-over-quarter and 102% year-over-year. The Vera Rubin product line is ramping at the fastest pace in company history, with revenue per gigawatt increasing from $18 billion for Hopper to $40 billion. The company’s market capitalization stands at $5.08 trillion, with a P/E ratio of 32.32.
Coherent Corp. separately noted extraordinary demand for optical components, anticipating supply to remain constrained for the next 12 to 18 months.
