On Thursday, Wedbush Securities adjusted its outlook on shares of NVIDIA Corporation (NASDAQ:NVDA), raising the stock's price target from $138.00 to $160.00 while maintaining an Outperform rating. The firm's analyst cited NVIDIA's consistent performance and anticipated growth in the AI sector as key factors for the improved target.
NVIDIA has demonstrated a pattern of surpassing forecasts by approximately $2 billion, and Wedbush expects this trend to continue, possibly even modestly exceed, based on strong third-quarter AI spending by hyperscale customers. The firm also predicts sustained growth in sales from non-hyperscale accounts will contribute to NVIDIA's financial results.
Looking further ahead, Wedbush increased its fiscal year 2026 outlook for NVIDIA. The firm's confidence is bolstered by the expected accelerated growth in hyperscale spending through calendar year 2025, which is anticipated to be driven by the adoption of NVIDIA's Blackwell architecture.
Moreover, the firm recognizes strong momentum in spending on datacenter GPUs by non-hyperscale entities, supported by various indicators such as additional startup fundraising, new sovereign funds aimed at AI spending, and the construction of non-hyperscale data centers.
Despite the optimistic long-term view, Wedbush anticipates only a typical increase of around $2 million in guidance for the fourth calendar quarter. The firm expresses some uncertainty regarding how the initial shipments of Blackwell, primarily to hyperscale customers, will be reflected in NVIDIA's sales projections. Nevertheless, Wedbush believes NVIDIA is well-positioned to have a significant output of Blackwell as the company heads into calendar year 2025.
In other recent news, NVIDIA's price target has been raised by both HSBC (LON:HSBA) and Susquehanna, reflecting a positive outlook on the company's growth potential. HSBC analyst Frank Lee increased the target to $200, citing NVIDIA's growth in the data center sector and diminishing supply chain concerns.
Similarly, Susquehanna raised their target to $180, highlighting the upcoming earnings report and the potential impact of NVIDIA's H100/H200 and Blackwell products.
In a significant technological advancement, NVIDIA, in collaboration with SoftBank (TYO:9984) Corp, has launched the world's first combined artificial intelligence and 5G telecommunications network, known as an artificial intelligence radio access network (AI-RAN). This development has potential applications in various sectors, including autonomous vehicles and robotics control.
On the earnings front, HSBC expects NVIDIA's third-quarter fiscal year 2025 sales to reach $35.3 billion, surpassing both management's guidance and consensus estimates. Looking ahead to the fourth quarter of fiscal year 2025 and the first quarter of fiscal year 2026, HSBC's sales forecasts are $38.0 billion and $42.7 billion, respectively.
In the semiconductor sector, Citi analysts predict a rebound and have given a 'buy' rating to several companies, including NVIDIA. Redburn-Atlantic initiated coverage on NVIDIA shares with a 'buy' rating, reflecting a positive outlook on the company's prospects in the field of accelerated computing. These recent developments provide a glimpse into the ongoing activities and analyst sentiment surrounding NVIDIA.
InvestingPro Insights
NVIDIA's recent performance and future prospects align closely with several InvestingPro metrics and tips. The company's market capitalization stands at an impressive $3.59 trillion, reflecting its dominant position in the semiconductor industry. NVIDIA's revenue growth is particularly noteworthy, with a staggering 194.69% increase over the last twelve months as of Q2 2025, supporting Wedbush's optimistic outlook on the company's AI-driven growth.
InvestingPro Tips highlight NVIDIA's financial strength and market position. The company boasts a perfect Piotroski Score of 9, indicating robust financial health. This aligns with Wedbush's confidence in NVIDIA's consistent performance and ability to surpass forecasts. Additionally, NVIDIA's impressive gross profit margins, currently at 75.98%, underscore its operational efficiency and pricing power in the AI chip market.
While NVIDIA's P/E ratio of 68.42 might seem high, the PEG ratio of 0.17 suggests the stock may be undervalued relative to its growth prospects. This could justify Wedbush's decision to raise the price target, as it indicates potential for further stock appreciation.
For investors seeking more comprehensive analysis, InvestingPro offers 22 additional tips for NVIDIA, providing a deeper understanding of the company's financial position and market dynamics.
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