Talk about an Nvidia (NVDA) bull!
Raymond James analyst Simon Leopold lifted his price target on Nvidia to $550 from $352 in a note on Thursday. Crunching the numbers, Leopold’s price target assumes about 130% upside from current levels.
That would estimate Nvidia reaches a $13 trillion market cap. The chipmaker’s current market stands at about $5.2 trillion.
What explains Nvidia’s optimistic fiscal 2028 revenue outlook?
Which new products are accelerating Nvidia’s growth trajectory?
How did Nvidia’s Q2 results compare to expectations?
What drove Raymond James to raise Nvidia’s price target?
“While near-term results were outstanding with sales doubling year over year, it is the FY28 outlook for 70% growth that the investors will applaud,” Leopold said. “Architectural Evolutions (LPU:NVL racks at 1:1 and agentic CPU Vera racks) accelerate growth. Capital returns remain robust, with a record $26 billion returned in F2Q27, including $20 billion of buybacks and a $0.25/share quarterly dividend totaling $6 billion.”
The average price target on Nvidia is $306, per Yahoo Finance AlphaSpace data.
Nvidia stock rose as much as 9% on the results and upbeat outlook. Shares in the tech giant fell 1% during premarket trading on Friday.
NVIDIA Corporation (NVDA)
Pre-Market: 8:44:30 AM EDT
Indeed, Nvidia’s quarter and outlook warranted the strong market response.
Nvidia saw adjusted earnings per share of $2.22 on revenue of $96.2 billion. These were better than the $2.09 per share and revenue of $92.3 billion the Street expected.
Nvidia’s Data Center revenue, which includes Hyperscalers and AI Clouds, Industrial, and Enterprise (ACIE), came in at $89 billion versus a projected $85.8 billion.
Edge Computing, which includes Nvidia’s other businesses, such as physical AI and gaming, brought in $7.2 billion. Analysts were expecting $6.6 billion.
Nvidia projected fiscal third quarter revenue of between $105.8 billion and $110.1 billion. Wall Street was calling for $105.1 billion.
This would be the first quarter above $100 billion in revenue for Nvidia, Stifel’s Roy said.
Nvidia said late Wednesday after reporting its fiscal second quarter earnings that it sees 70% revenue growth for fiscal year 2028. This was above analyst forecasts for 45% growth. The sales gain would be larger if not for memory chip shortages, Nvidia CEO Jensen Huang said.
“Rubin and LPU ramps are happening faster than our model,” Leopold added. “Vera Rubin entered production shipments this month. Purchase orders from every hyperscaler, AI cloud and system OEM, positioning it as Nvidia’s fastest ramp ever. Groq 3 LPX is already in full production, with volume shipments later this quarter and neocloud Nebius the first adopter. Vera Rubin chip revenue itself is expected to reach ~20% of Data Center revenue in F3Q27.”
https://finance.yahoo.com/markets/stocks/article/nvidia-could-hit-a-13-trillion-market-cap-analyst-says-180519193.html
