Analysts Boost Nvidia Stock Price Targets Ahead of Earnings

Nvidia (NVDA) stock has been on a tear this year, and analysts are bullish on the company's prospects as it approaches its third-quarter earnings report. The chipmaker's shares have nearly tripled in value, and analysts are raising their price targets, citing strong demand for AI infrastructure and data center growth.

Nvidia is expected to report third-quarter revenue growth of 84% year-over-year to $33.29 billion, driven by record data center sales. The company's data center revenue hit a record $26.3 billion in the second quarter, and analysts are calling for it to climb to a fresh high of $29.53 billion in the third quarter. Morgan Stanley raised its price target for Nvidia stock to $160 from $150 earlier this week, citing the strength of its data center growth.



Stifel analysts also raised their price target for Nvidia stock to $180, implying about 23% upside from Tuesday's intraday price of $146.54. They cited a total addressable market of over $100 billion by 2025 and a longer-term opportunity funnel that could approach $1 trillion. Truist also raised its one-year target to $167, highlighting a strong demand outlook heading into 2025.



Investors will also be watching for updates on shipments of Nvidia's Blackwell AI chip, which CEO Jensen Huang has called "a complete game changer for the industry." However, Morgan Stanley analysts warned that supply constraints could limit the upside of Nvidia's near-term outlook, adding "we think the bigger upward revisions happen later in the year."

Despite the optimism, investors should approach the stock with caution, as Wall Street's expectations are higher than Nvidia's own guidance. The company's share price could slip even if it beats average analyst sales and earnings estimates. As a long-term investment, Nvidia stock still holds plenty of promise, with a dominant position in the market for advanced GPUs for AI applications and its industry-leading software platform giving it competitive advantages.

In conclusion, analysts' bullish sentiment on Nvidia is driven by strong demand for AI infrastructure and data center growth. With record data center sales and a promising Blackwell AI chip on the horizon, Nvidia's future looks bright. However, investors should remain vigilant and monitor the company's earnings closely, as potential supply constraints and high Wall Street expectations could lead to volatility.