Nvidia shares jumped in premarket trading Thursday after the chipmaker beat Wall Street's second-quarter revenue and earnings estimates. Goldman Sachs and Citigroup raised price targets and Cantor held its target, citing data-center demand, margin guidance and record cash returned to shareholders.
Nvidia shares climbed more than 7% in premarket trading Thursday after the company posted second-quarter earnings after the closing bell Wednesday. The semiconductor company reported revenue of $96.2 billion, above Wall Street's consensus of $92.3 billion, with earnings per share of $2.22 versus predictions of $2.0.
Goldman Sachs sees a clearer path higher
Goldman Sachs lifted its 12-month price target on Nvidia from $285 to $300, with analysts led by James Schneider citing a clearer path for the stock to outperform the sector. The bank sees potential upside to Nvidia's fiscal 2028 guidance, which already calls for revenue growth of 70%, well above analysts' expectations of 45%, if the company keeps working with tech firms on data-center build-outs.
The bank also pointed to a forecast gross margin of 72% to 73% in fiscal 2028, which the bank said should ease investor worries over spending costs. The analysts added that management's greater transparency on customer financial guarantees should reassure investors about its commitment to returning cash to shareholders.
Citigroup points to record shareholder returns
Citigroup also raised its target, to $315 from $300. Analysts led by Atif Malik noted that Nvidia returned about $26 billion to shareholders through dividends and buybacks and still has $99 billion left for share repurchases. The bank said Nvidia continues making commitments across supply, infrastructure and partner ecosystems to capture growth ahead.
Cantor holds its target, cites AI reach
Cantor kept its price target at $350. Analysts led by C.J. Muse said management did a "great job of refocusing investors on the company's unique capabilities that will drive outsized growth". They pointed to Nvidia's hardware and software running nearly all AI models, its growing share of data-center revenue, and its ability to bring AI to markets globally at low cost.
Source: MarketWatch
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