Morgan Stanley increased its target on the stock to $206 from $200, noting that while supply dynamics will dominate the Q2 earnings narrative, long-term focus will remain on demand.
Nvidia Corp. (NVDA) has received a boost from Morgan Stanley and Cantor Fitzgerald, as the firms raised their price targets on the stock, citing strong expectations heading into the company’s upcoming second quarter (Q2) earnings report.
Both firms maintain ‘Overweight’ ratings as they anticipate continued growth, especially in Nvidia’s AI and data center businesses, as per TheFly.
Morgan Stanley increased its target to $206 from $200, noting that while supply dynamics will dominate the Q2 earnings narrative, long-term focus will remain on demand. The firm expects strong Q2 earnings, forecasting $46.6 billion in revenue for July, up from a previous estimate of $45.2 billion.
Nvidia stock traded 1% higher on Monday, after the morning bell. On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bullish’ territory the previous day amid ‘low’ message volume levels.
The firm also raised its outlook for Nvidia’s revenue in the third quarter (Q3) to $52.5 billion from the previous guidance of $51.3 billion.
Cantor Fitzgerald boosted its price target to $240 from $200. The firm pointed to rising confidence in Nvidia’s ability to ramp production of its new Blackwell platform, which is central to meeting soaring AI compute demand.
The firm now sees Nvidia’s data center revenues reaching $200 billion to $300 billion between 2025 and 2026, up from earlier projections. It also suggested Nvidia is on track to hit $8 per share in earnings by calendar year 2026 if current trends persist.
The chip behemoth sees Q2 revenue of $45 billion, plus or minus 2%. As per Fiscal AI data, analysts expect Nvidia’s Q2 revenue to be $45.8 billion and earnings per share (EPS) to hit $1.00. The company is expected to release the results on August 27.
Nvidia’s stock has gained 35% year-to-date and over 39% in the last 12 months.
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