Melius Raises NVIDIA Price Target to $205

Melius analyst Ben Reitzes raised the price target on NVIDIA (NASDAQ: NVDA) to $205 (from $195) while maintaining a Buy rating.

“The Momentum is Back: We think the market reaction is right – and could get even better as we go throughout the year – here’s why: 1) The ex-China guide seems to be $2-3B above expectations for demand everywhere else for F2Q, implying better real demand at major clouds and in gaming for new Blackwell based products, 2) Gross margins are likely to go back into the mid-70%’s quickly in F2H26, helping long-term earnings power, 3) NVDA’s tone vs.

GTC in March is much improved since the AI Diffusion rule has now been rescinded and Trump has catalyzed an enormous amount of Sovereign AI demand (dozens more announcements to come) and 4) We still get the feeling that the $8B in quarterly revenue from China AI isn’t lost forever and that the administration will assess how a US company (Nvidia) can serve that market so half the world’s AI developers don’t innovate on a Chinese platform.

Bottom line: We reiterate our Buy rating and are very excited about Sovereign and hyperscaler demand driving upside for multiple years.

We take our estimates higher and move our target to $205 (above where it was before all the regulatory concerns).”

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