Why are analysts raising Nvidia (NVDA) targets before earnings?

The analysts are raising Nvidia (NVDA) targets before earnings due to several factors:

1. **Strong AI Demand**: The accelerating demand for AI infrastructure is a significant growth driver for Nvidia. Analysts such as Ruben Roy from Stifel have pointed to "broad-based demand" for Nvidia's GB300 platform, indicating a favorable market trend that is expected to continue.
2. **New Product Launch**: The upcoming launch of Nvidia's GB300 platform is anticipated to represent a major performance step-up compared to the GB200. This new product is expected to contribute positively to Nvidia's revenue and profitability.
3. **Positive Market Sentiment**: Nvidia's stock has already seen a 33% increase in 2025, reflecting strong investor confidence in the company. The market sentiment remains bullish, with expectations of sustained strength in AI demand across the tech sector.
4. **Earnings Expectations**: Analysts are optimistic about Nvidia's earnings report, with estimates for Q2 2026 showing a positive trend. The estimated EPS is $0.94, and the estimated revenue is $45.91 billion.

5. **Strategic Developments**: Nvidia's recent revenue-sharing deal with the Trump administration to resume AI chip sales to China has created optimism around improving China sales. This strategic move is expected to have a positive impact on Nvidia's performance in the coming quarters.

In conclusion, the combination of strong AI demand, new product launches, positive market sentiment, favorable earnings expectations, and strategic developments are leading analysts to raise their price targets on Nvidia before the earnings report.