NVIDIA Price Target Raised to $245, Buy Rating Maintained

Craig-Hallum analyst Richard Shannon raised NVIDIA's price target to $245, citing robust AI demand trends despite a recent stock dip. The firm believes Nvidia is well-positioned for growth due to its system-level offerings and strong capex spending plans by major HSDCs. The analyst maintains a Buy rating and expects earnings growth to continue in the low 30's EV/EPS range.

NVIDIA Corporation (NVDA) has seen a significant increase in its price target by multiple analysts, reflecting a positive outlook on the company's growth prospects despite recent market turbulence. The latest earnings report, released on September 2, 2025, showed strong revenue growth, with a 56% year-over-year increase to $46.7 billion in the second quarter of fiscal 2026. This performance was driven largely by the data center business, which has become a primary growth engine for NVIDIA [2].

Craig-Hallum analyst Richard Shannon recently raised NVIDIA's price target to $245, citing robust demand for AI-driven technologies. Shannon's analysis underscores the company's strong position in the AI infrastructure market, driven by its system-level offerings and substantial capital expenditure (capex) spending plans by major hyperscale data centers (HSDCs) [3].

The analyst's optimism is supported by several key factors. NVIDIA's Blackwell platform, which has seen high-volume shipments of the GB300 architecture, is a significant driver of growth. The platform's energy efficiency and performance gains make it a preferred choice for running advanced reasoning AI and inference workloads. Major players such as OpenAI, Meta, and global cloud providers are adopting Blackwell at scale, positioning NVIDIA at the heart of the next wave of AI buildouts [2].

Moreover, NVIDIA's strong market position is evident in its 92% share of the high-performance GPU market for large language models and generative AI systems. The company's vertical integration, including proprietary NVLink and Mellanox-based networking assets, allows it to control entire AI cluster buildouts, a capability unmatched by competitors [3].

Despite these positive indicators, regulatory uncertainty and policy risks remain significant challenges. The U.S. has proposed a 15% tariff on AI chip exports to China, but no legal framework exists, leaving the company to operate without additional costs for now. The recent agreement to export licenses covering up to 15% of revenue from China provides some relief, but ambiguity over the rules could still introduce volatility [3].

NVIDIA's earnings outlook for the third quarter of fiscal 2026 is $54 billion, with gross margins in the mid-70% range. Despite these policy overhangs, the company expects earnings growth to continue, with Shannon projecting growth in the low 30's EV/EPS range [3].

Overall, the positive price target revisions reflect a consensus among analysts that NVIDIA remains well-positioned for growth, driven by robust AI demand trends and strong system-level offerings. However, investors should remain vigilant regarding policy risks and regulatory uncertainty, which could impact the company's growth trajectory.

References:
[1] https://www.tradingview.com/news/gurufocus:ddebb6563094b:0-nvidia-stock-set-to-surge-wall-street-hikes-targets-despite-softer-forecast/
[2] https://www.nasdaq.com/articles/nvidias-q2-sales-hit-46b-can-blackwell-ramp-deliver-54b-q3
[3] https://www.tradingnews.com/news/nvidia-stock-price-forecast-nasdaq-nvda-balances-172-usd