Several analysts on Wall Street have increased their price targets for NVIDIA (NVDA) ahead of the semiconductor company’s Q2 results, which are due on August 27th. Mark Lipacis, a leading analyst from Evercore, has lifted the target from $190 to $214, suggesting a potential increase of 20%. The stock has gained more than 32% since the beginning of the year, driven by strong demand for graphics processing units (GPUs) amid the ongoing AI boom.
Evercore Analysts Optimistic About NVIDIA
Lipacis pointed out that NVIDIA shares are currently below the eight-year median P/E ratio of 36X, with a next twelve months (NTM) ratio of 33X, which is also lower than the 37X ratio of its competitor AVGO. He anticipates that NVDA’s earnings per share will rise by 48% in 2025 and by 39% in 2026, making it a compelling investment choice, especially given its price-to-revenue growth ratio.
In discussing the stock’s positioning, Lipacis mentioned that it comprises 14% of the S&P 500, with 8% of the index’s weighting. He noted that there’s some investor apprehension regarding NVDA’s capacity to increase its weighting further due to the lack of precedent.
Nonetheless, he pointed out that companies like Intel, Microsoft, Dell, and Cisco achieved a 14% weighting when they were at their peaks.
Lipacis ranks 39th among over 9,900 analysts on Tipranks, boasting a 66% success rate and an average annual return of 24.6%.
Meanwhile, Wedbush analyst Matt Bryson has also raised his price target for NVDA in light of expected Q2 FY26 revenues. He maintained a buy rating and adjusted the target from $175 to $210.
Is NVDA Stock a Good Buy?
Despite ongoing uncertainties regarding H20 chip sales to China, Wall Street remains optimistic about NVIDIA’s stock, primarily due to strong AI chip demand.
As the Q2 revenue approaches, NVIDIA shares are receiving a strong buy consensus rating, with 35 buy recommendations, 3 holds, and 1 sell. Wall Street forecasts that NVDA will report year-on-year growth of 48% in Q2, resulting in earnings of $1.01 and an approximate 53% revenue jump to around $45.9 billion.
The average price target for NVDA stock is $198.57, indicating an upside potential of 11.5% from current levels.
