Piper Sandler maintains Underweight on RPC with PT down to $4.

Piper Sandler maintains Underweight on RPC with PT down to $4.

Piper Sandler has raised its price target for Nvidia Corporation (NVDA) to $225, projecting a 23% upside ahead of the company's Q2 earnings report on August 27. This move comes amidst strong demand for Nvidia's graphics processing units (GPUs), despite limited supply and ongoing challenges in the semiconductor market.

The analyst firm cited robust demand from U.S. hyperscalers and renewed sales from China, where GPU sales resumed with a 15% U.S. tariff. Piper Sandler's analyst Harsh Kumar expects another solid quarter, despite supply constraints. He noted that demand continues to outstrip Nvidia's supply capacity, with U.S. HPC buyers snapping up chips faster than Nvidia can ship them.

Nvidia's shares have already surged more than 26% in 2025, and the company is expected to report $1 in non-GAAP EPS and $45.76 billion in revenue, according to FactSet. This represents a sharp jump from $0.68 EPS and $30.04 billion in revenue reported in the same period last year.

Goldman Sachs also raised its target for Nvidia, from $185 to $200, calling for a 9.5% gain. The analyst maintained a buy rating but warned investors to watch for potential shifts in sentiment due to supply chain strain, hyperscaler purchases, and the launch of Nvidia's new GB200 and NVL systems.

Nvidia's new GB200 and NVL systems, such as the NVL36 and NVL72, are massive rack-scale setups with higher pricing and more complex delivery timelines. Investors will be closely watching for updates on these systems' shipments and adoption rates, as well as their potential impact on Q3 revenue.

Piper Sandler's Harsh Kumar said investor sentiment is being driven by hyperscaler activity and China access, with Google increasing its full-year AI capex to $85 billion and Microsoft expecting to spend $30 billion in Q3 alone. Nvidia's roadmap will be tested this quarter, as investors await details on these new systems and their impact on the company's financial performance.

References:
[1] https://www.cryptopolitan.com/piper-sandler-lifts-nvidia-target-to-225/
[2] https://www.cnbc.com/2025/08/13/piper-sandler-raises-nvidia-price-target-ahead-of-earnings-calls-for-more-than-20percent-upside.html