Raymond James Raises Nvidia Price Target to $515 Following Strong Earnings

Raymond James has significantly raised its price target for Nvidia from $352 to $515, maintaining a Strong Buy rating on the stock. This adjustment comes after Nvidia's impressive Q2 earnings, which exceeded expectations and prompted a 46% increase in the price target within just two days.

The firm’s bullish outlook is largely driven by Nvidia's forecast of a 70% growth in sales for fiscal 2028, suggesting that revenue from non-hyperscaler clients will surpass that from hyperscale customers. This indicates a broader addressable market than previously anticipated.

In addition to strong demand from major cloud providers, Raymond James highlighted robust capital returns and architectural demand as key factors supporting this optimistic projection. The firm also speculated that Nvidia's cumulative sales could exceed $1 trillion by fiscal year 2029, a figure that underscores the potential for substantial growth in the AI and data center markets.

As of August 26, Nvidia shares closed at approximately $209.66, already reflecting high growth expectations. The new price target suggests that Raymond James believes the market may still be undervaluing Nvidia's future prospects. Investors will be closely watching upcoming earnings reports to see if the projected growth materializes, particularly in non-hyperscaler revenue.

New Facts on Nvidia's Earnings

• Nvidia reported $96.2 billion in revenue for Q2 of fiscal 2027, marking a 106% increase year-over-year.
• The company's data center business generated $89.0 billion in revenue, a 117% year-over-year increase.
• Adjusted earnings per share were $2.22, exceeding consensus estimates.
• Nvidia projected third-quarter revenue of approximately $108 billion, surpassing analyst forecasts.
• The company anticipates around 70% revenue growth for fiscal 2028.
• Following Nvidia's earnings report, Nasdaq futures rose by 1.1% in early trading on August 27.
• Micron and Marvell, along with software stocks like Salesforce and CrowdStrike, saw gains in premarket trading due to Nvidia's performance.
• Brent crude oil prices fell by 1.4% to $86.66 per barrel, while West Texas Intermediate dropped 1.6% to $80.94 per barrel.