UBS raised its 12-month price target for Nvidia Corp. to $275 [1] from $245 [1].
The adjustment comes as analysts anticipate a revenue beat for the first quarter of fiscal 2027. This move signals strong confidence in the continued growth of artificial intelligence demand, which remains the primary driver for the company's valuation on the NASDAQ.
The price target increase occurred in early May 2024 [1]. This shift reflects a broader optimistic outlook on the chipmaker's ability to exceed financial estimates during its upcoming reporting cycle. The firm's updated projections suggest that Nvidia is well-positioned to capitalize on the expanding AI infrastructure market.
Market attention is now focused on the company's official financial disclosures. Nvidia is scheduled to release its first-quarter fiscal 2027 earnings results on May 20, 2024 [2]. Analysts said the report is expected to confirm a revenue beat, which would validate the upward target set by UBS.
The target hike of $30 per share highlights the aggressive growth expectations surrounding the semiconductor industry. While the market has already priced in significant gains, the UBS adjustment suggests there is further room for expansion based on current demand trends.
UBS analysts said the upgrade was based on the expectation that AI-related demand will continue to push revenues higher than previous estimates [1]. This trend has consistently pushed the company toward record-breaking quarters over the past year.
“UBS raised its 12-month price target for Nvidia Corp. to $275 from $245.”
The upward revision by a major institution like UBS indicates that professional analysts believe Nvidia's growth is not yet peaking. By raising the target ahead of the May 20 earnings call, UBS is signaling that the company's AI-driven revenue stream is likely robust enough to outperform even the high expectations currently held by the market.
