UBS Raises NVIDIA Price Target to $300

UBS analyst Timothy Arcuri raised the price target on NVIDIA (NASDAQ: NVDA) to $300 (from $280) while maintaining a Buy rating.

“Results were very strong and guidance spot in-line w/our preview, but most importantly, NVDA is finally providing firmer guidance on C2027 that implies EPS >$16 even as gross margins face near-term headwinds from memory price inflation.

We like the choice to explicitly guide next year (as opposed to its prior backlog commentary) and we think demand still far exceeds this number so there is still room to walk this higher if supply and powered data center shell capacity allow.

To make the point about demand, we think NVDA is tracking to ship ~13GW this year (~7GW to hyperscalers and ~6GW to neoclouds) and NVDA’s new C2027 guidance (including ASP increases) implies ~19-20GW.

However, the emergence of SPCX (which UBS estimates is implying ~6GW added in C2027) would seem to put NVDA in a heavy allocation situation and leave little to no room for shipments to hyperscalers to grow at all.”

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