Stifel increased its price target for Nvidia to $315 from $282, maintaining a buy rating as the company continues to benefit from surging artificial intelligence demand.
The upgrade follows Nvidia’s fiscal second-quarter results, which reported revenue of $96.2 billion, a 106% year-over-year increase and above the consensus estimate of $92.2 billion to $92.3 billion. Adjusted earnings per share reached $2.22, exceeding the $2.09 forecast.
Analysts at Bernstein SocGen Group and Melius Research also raised their targets, to $400 and $420 respectively, while Goldman Sachs lifted its target to $300 with a neutral rating. The upgrades reflect expectations for sustained demand across Nvidia’s data center and edge computing segments.
Nvidia projected third-quarter revenue of $108 billion, roughly 3% above consensus, and issued its first full-year guidance, forecasting approximately 70% revenue growth for fiscal 2028. Management noted that supply constraints may limit growth to this level despite potential demand supporting 100% expansion.
The company guided gross margins to 72%–73% for the coming year, attributing the range to memory cost pass-throughs rather than price erosion. Price increases are scheduled to take effect in the first quarter of fiscal 2028. Nvidia also disclosed $350 billion in supply commitments, with $108.5 billion in contingent guarantees and take-or-pay agreements with hyperscale cloud providers.
The Vera Rubin product line is expanding at the fastest pace in company history, with potential revenue per gigawatt scaling from $18 billion (Hopper) to $40 billion. Nvidia’s market capitalization stands at $5.08 trillion, with a price-to-earnings ratio of 32.32.
Coherent Corp. separately reported extraordinary demand for its optical components, projecting supply shortages to persist for the next 12 to 18 months.
