UBS Raises NVIDIA Price Target to $205

UBS analyst Timothy Arcuri raised the price target on NVIDIA (NASDAQ: NVDA) to $205 (from $175) while maintaining a Buy rating.

“We see FQ2 (Jul) revenue in the ~$46B range (or a similar ~$1B beat to last Q) and see FQ3 (Oct) revenue guided to ~$54-55B excluding China, or as much as ~$57B if China is included.

Our supply chain work on production suggests compute can grow ~20-25% Q/Q on a base of ~$35B in FQ2 – this alone should add $7-8B of compute revenue on a Q/Q basis for FQ3.

We are a bit less clear on the networking portion of data center as some in the supply chain have called out shortages at 800G, though we still think networking revenue of ~$6B is do-able for FQ3 (up nearly $1B Q/Q).

Ergo, total data center revenue of ~$49B seems reasonable for FQ3 while gaming is coming off such a strong FQ1 that comps are harder there.

On China, there is likely some re-usable H20 inventory that had been written down, but we believe NVDA did place new Hopper wafer orders upon receipt of H20 license news and we still believe it is working on a Blackwell version as the US government likely (in our view) raises the ceiling of what is allowed to ship into China as part of its rare earth deal efforts.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.