Wolfe Research Reiterates Outperform Rating on NVIDIA

Wolfe Research analyst Chris Caso reiterated an Outperform rating and $275.00 price target on NVIDIA (NASDAQ: NVDA).

“NVDA beat expectations with another strong contribution from Datacenter, and now plans to breakout datacenter revenue by customer exposures – demonstrating that around half of its business is insulated from pressure from ASICs.

In addition to greater bookings for Rubin in FY28 (CY27), we expect sales of new TAM expansion products – CPU / LPU / STX racks – to contribute to higher bookings over time.

We raise our FY28 EPS to ~$12.19 on revenue of ~$560bn and GMs of ~70%, putting the stock at 18.3x FY2 EPS, compared with peer average 30x.

We see line of sight to $15 in FY28 EPS in our bull case, which we outlined in our AI preview, which comprehends ~$680bn in revenue.

That EPS incorporates higher bookings and 10% attach of new products to GPU rack sales in FY28, and puts the stock at just a 15x multiple.

While NVDA did not choose to update its FY28 outlook on the call, we are willing to wait for upside we think is likely to occur, and remain bullish particularly with the stock at these levels.

We reiterate OP and our $275 PT.”

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