Nvidia shares fell about 1.8% in premarket trading on Thursday, even after the chipmaker reported stronger-than-expected quarterly results and guidance. Analysts responded by raising their price targets but warned that uncertainty around China remains a key risk.
For the July quarter, Nvidia posted revenue of $46.7 billion, beating Wall Street’s $46.2 billion estimate. Growth was fueled by an 11–12% quarter-on-quarter increase in Blackwell GPU compute revenue, reaching about $26 billion, and a 46% surge in networking sales.
Looking ahead, Nvidia guided October-quarter revenue to $54 billion, above the $53.4 billion consensus. JPMorgan noted the results reflected “solid revenue momentum” led by GPU growth and networking strength. The bank also said Nvidia’s H20 chips could add $2–5 billion or more in upside revenue, depending on how geopolitical issues with China unfold. JPMorgan raised its price target to $215 from $170 and maintained an Overweight rating.
Morgan Stanley echoed the upbeat outlook, highlighting the $54 billion guidance and lifting its Nvidia price target to $210 from $206, also with an Overweight stance. KeyBanc said data center revenue was slightly weaker than expected but upgraded its price target to $230, keeping an Overweight rating.
DA Davidson took a more cautious view, raising its target to $195 from $135 but keeping a Neutral rating. The firm cited weaker data center results and concerns over the company’s ability to sell H20 chips in China. However, it also noted strong long-term demand for compute power in AI, driven by growth in pre-training, post-training, and inference workloads.
Truist raised its target to $228, calling Nvidia “the AI company,” and emphasized its leading role in powering AI infrastructure worldwide.
Despite the short-term dip in shares, analysts remain broadly optimistic about Nvidia’s long-term growth potential, citing its dominance in GPUs, networking, and AI-driven demand.
