UBS on NVIDIA (NVDA): Hard to See How Stock Does Not Keep Moving Higher From Here

UBS analyst Timothy Arcuri reiterated a Buy rating and $235.00 price target on NVIDIA (NASDAQ: NVDA).

The analyst commented, "Consistent w/our preview, NVDA's guidance was very solid (even better than our $63-64B) with demand commentary delivering another full throated message that the market is too concerned about any "bubble" that may be forming. While still probably prudent to allow for some supply chain uncertainty, it is not rocket science to take total backlog and shipment commentary from the company and back into $350-400B in revenue and >$9 in EPS for C2026 - and it sounds like there is still time for this number to move even higher. Probably the most encouraging thing to us was that NVDA's "supply" grew a significant~$25B Q/Q to ~$70B. History suggests this number is usually ~80-90% of the following Q's revenue - and yet NVDA is "only" guiding FQ4 to $65B. To us, this means that NVDA could do $75-80B in FQ1 (April) revenue even if this "supply" number did not grow at all when it reports FQ4. The Street does not have $80B in revenue until FQ4:27 (Jan '27), meaning big upward revisions are apt to continue. Given all of this, odds are very high that EPS is up again substantially in C2027 (we now model ~$11 vs. Street ~$8.50) so on these numbers, it is very hard to see how this stock does not keep moving higher from here. Ultimately, the AI infrastructure tide is still rising so fast that all boats will be lifted, but NVDA seems to be actually tightening its grip on broadly enabling AI across modalities (text, video, etc..) and industries. We are increasing estimates yet again (C2026 to ~$8.70, C2027 to ~$11) which, even assuming the stock will trade a low 20x multiple, and we maintain our $235 PT."

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $186.52 yesterday.

You May Also Be Interested In

• Active options: TSLA NVDA SPCX MU AAPL AMD INTC AMZN
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Jane Street Took $15 Billion Hit In July Tied To Situational Awareness - Reuters