AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
UBS Raises Price Target on NVIDIA to $205 Ahead of Earnings
ByAinvest
Tuesday, Aug 26, 2025 9:22 pm ET1min read
UBS analyst Timothy Arcuri has raised the price target on NVIDIA (NVDA) to $205, citing strong demand signals and optimism about the company's Q3 earnings. The firm expects NVIDIA to bring in a few billion dollars each quarter after reaching a deal with the US government to sell H20 chips. UBS sees FQ2 revenue at ~$46B and FQ3 revenue at ~$49B, with a total data center revenue of ~$49B.
UBS analyst Timothy Arcuri has raised the price target on NVIDIA (NVDA) to $205, citing strong demand signals and optimism about the company's Q3 earnings. The firm expects NVIDIA to bring in a few billion dollars each quarter after reaching a deal with the US government to sell H20 chips. UBS sees FQ2 revenue at ~$46B and FQ3 revenue at ~$49B, with a total data center revenue of ~$49B.Arcuri's new target reflects a significant increase from the previous estimate of $175, indicating a strong belief in NVIDIA's financial performance. The analyst attributes this optimism to robust demand signals, particularly in the data center sector. Arcuri expects NVIDIA to deliver another beat in its upcoming Q2 earnings report, projecting revenue to be $1 billion higher than current forecasts [1].
The deal with the US government for H20 chip sales in China is also expected to boost NVIDIA's data center revenues. The company has resumed H20 chip sales to China, with 15% of the revenues going to the U.S. government. This arrangement is seen as a significant tailwind for NVIDIA, potentially adding billions of dollars to its earnings per quarter [2].
The average price target on Wall Street stands at $196.65, suggesting a potential upside of 12.12% from the current price. Analysts' consensus recommendation from 65 brokerage firms indicates an "Outperform" status, with the average target price for NVIDIA being $195.98 [1].
GuruFocus estimates the estimated GF Value for NVIDIA in one year to be $290.99, suggesting an upside of +67.85% from the current price of $173.37 [1]. The global generative AI market size is anticipated to reach $967.6 billion by 2032, with a CAGR of 39.6% from 2024 to 2032, further driving demand for NVIDIA's AI chips [2].
References:
[1] https://finance.yahoo.com/news/nvda-buy-nvidia-stock-aug-192124545.html
[2] https://www.tradingview.com/news/zacks:0a217645e094b:0-nvidia-likely-to-beat-q2-earnings-estimate-how-to-play-the-stock/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet