Benchmark Raises Nvidia’s Price Target to $220

Benchmark analyst Cody Acree raised on August 28, 2025, the price target on Nvidia to $220 (from $190) while maintaining a ‘Buy’ rating.

“Nvidia’s share were off about 3% after-hours, as it delivered only modest upside to an elevated Street consensus, as its Data Center compute sales declined 1% Q/Q, driven by the government’s export restrictions on Nvidia’s H20 GPUs for the China market.

At a high level, NVDA delivered revenue of $46.7B, or $1.7B ahead of its original guidance and $700M aheadof the consensus.

However, these sales amount included $650M of sales of its H20 processor to customers outside of China, which if adjusted, left Nvidia’s results just in-line with the Street.

Regardless, its total sales were up 6% Q/Q and 56% Y/Y, even considering Nvidia’s expected Q2 $4B impact from the H20 ban, which compares to the company’s estimated Q1 impact of $2.5B.

So, net-net, with solid sequential and annual growth, despite the negative Chinese impact and highly elevated Street expectations versus guidance, we view NVDA’s results as encouraging and consistent with its expected growth drivers across the AI infrastructure landscape.

With its moderate Q2 revenue upside, Nvidia posted a sequential gross margin recovery back to nearly its December pre-H20 ban levels, at 72.7%, versus 61% in Q1, and operating expenses grew 6% Q/Q as it continued to investment heavily in the development of its aggressive annual upgrade target cadence.

Q2 EPS was $1.05, including the sale of $180 million of previously reserved H20 inventory, that was part of the $650 million H20 sales outside of China.

Excluding the reversal of the inventory reserve, Nvidia would have posted EPS of $1.04, a $0.04 or $0.03 upside to the $1.01 consensus, depending on how you look at it.”

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.