After NVIDIA's Earnings Report, Institutions Such as Citi and JPMorgan Chase Jointly Raise Price Targets
BlockBeats News, August 28th. NVIDIA's financial report once again set a milestone for US stock AI trading. The company's second-quarter revenue reached $96.2 billion, a year-on-year increase of 106%; data center revenue was $89 billion, a year-on-year increase of 117%; the third-quarter revenue guidance is $108 billion, higher than the market's expectations. More importantly, NVIDIA has provided an outlook for the next fiscal year, expecting revenue to continue growing by about 70%, significantly alleviating the market's concerns about AI capital expenditure reaching its peak.
After the financial report was released, Wall Street quickly raised its valuation anchor. Goldman Sachs raised NVIDIA's target price from $285 to $300, Citigroup from $300 to $315, JPMorgan from $280 to $320, while Bernstein and SocGen made a more significant adjustment to $400. Institutions such as Mizuho, Stifel, Evercore, Melius, and others also followed suit in raising their target prices, showing a narrowing difference in views on the continuity of demand for AI chips among sellers.
The reaction in the secondary market was more direct. NVIDIA rose by 8.7% on Thursday, with a one-day market cap increase of about $44.15 billion, driving the Nasdaq up by 1.6% and the S&P 500 up by 0.7%. At a time when the market had been continuously questioning the overheating of AI trading, the return on investment for cloud vendors, and NVIDIA's complex financing arrangements, this financial report is equivalent to reinjecting confidence into the AI infrastructure chain.
However, the new focus of pricing is also changing. The market will continue to focus on the production pace of the Rubin platform, whether the gross margin can be maintained at a high level, whether the revenue from Chinese data centers will recover, and whether NVIDIA's asset-liability commitments will increase after driving AI data center construction through partnership financing.
