Ahead of Nvidia’s (NASDAQ:) earnings release on Wednesday, May 22, Barclays analysts Baird And Stifel raised its price target on the stock.
In a note on Monday, Barclays maintained its neutral rating on Nvidia but raised its target on the company’s shares to $1,100 from $850, saying all signs point to another upward revision.
“Overall, checks continue to indicate upside potential of >$1bn in April and $2bn in July,” Barclays said. “We believe the company will be able to gain additional revenue growth potential from the pricing of the H200, which will begin deliveries in the July quarter.”
They added: “Looking ahead, the next major step in revenue growth will be the growth of GB200 sales. Intra-Q has been very positive about the overall move to the GB200 end-to-end solution for hyperscalersand we don’t think this shift in the mix is fully appreciated.”
Baird raised the bar Nvidia shares to $1,200 from $1,050, maintaining an outperform rating on Nvidia shares. The firm raised its estimates and price targets based on continued strong demand for Nvidia related to artificial intelligence.
“There is no peer to Nvidia’s product offerings this year and next, which, coupled with shorter lead times (CoWoS capacity growth), should play well in the second half of the year from a market share perspective,” they write. “We are raising our GPU shipment forecast for this year and also expect strong growth in 2025, supporting our elevated DC revenue forecast for this year.”
Stifel price target for Nvidia’s Buyer and Top Pick rating has been raised from $910 to $1,085. The company’s analysts expect another round of strong results and positive outlook as the investment cycle in artificial intelligence infrastructure continues.
“Once again, growth/upgrade is widely expected as investor focus is likely to remain on the medium-term sustainability of accelerating investments in AI infrastructure, competitive dynamics as MI300x ramps up pace and telecom service providers increasingly invest in domestic AI accelerator technologies, which is the usual concerns around China. and an update on NVDA’s software strategy,” Stiefel said. “Our supply chain checks continue to indicate strong demand for the H100/H200, despite the Blackwell hype. continues to grow“
In its preview of Nvidia, Morgan Stanley said its view of a positive quarter remained unchanged and AI visibility continued to grow.
“Enthusiasm around NVL72 underpins growing enthusiasm among investors for growth next year,” the bank said. “In each of the last two quarters, NVDA exceeded initial revenue guidance by approximately $2 billion and forecast additional growth of approximately $2 billion; We’re expecting something similar later this week.”