TLDR
- Morgan Stanley raised Nvidia’s price target to $220 from $210, expecting the strongest quarterly results in recent periods as Blackwell platform scales rapidly
- Wells Fargo increased its price target to $265 from $220, maintaining an Overweight rating based on continued hyperscale capital expenditure momentum
- CEO Jensen Huang indicated revenue estimates for the next five quarters should increase by $70-$80 billion range
- Wells Fargo projects FY26 revenue of $209.2 billion, FY27 revenue of $301.6 billion, and FY28 revenue of $383.2 billion
- Morgan Stanley notes Blackwell remains the AI chip of choice with very strong demand signals for Vera Rubin, despite earlier rack-related issues now being resolved
Two major Wall Street banks lifted their price targets for Nvidia this week. The moves came as analysts expect the chipmaker to report strong quarterly results driven by its next-generation AI platform.
Morgan Stanley increased its price target to $220 from $210. The bank maintained its Overweight rating on the stock. Wells Fargo went further, raising its target to $265 from $220 while keeping an Overweight rating.
The upgrades reflect growing confidence in Nvidia’s near-term performance. Morgan Stanley analyst Joseph Moore stated the firm expects “the strongest result we have seen in the last few quarters.” The bank said the market has improved over the past 45 days.
Nvidia’s Blackwell platform appears to be scaling faster than previously expected. Morgan Stanley said industry checks show “material acceleration” in the rollout. The company has resolved earlier rack-related issues that had slowed deployment.
CEO Jensen Huang recently indicated that revenue estimates for the next five quarters should rise by $70 to $80 billion. Morgan Stanley raised its estimates by $22 billion following those comments. The stock trades about 10 percent lower than when Huang made the remarks.
Competition Heats Up But Nvidia Maintains Edge
Nvidia’s stock has lagged some other AI names on a relative basis. Investors have shown interest in potential growth from ASICs and AMD chips. Morgan Stanley acknowledged this competitor enthusiasm but said it reflects “progress but also a very strong market.”
The bank maintains that Blackwell remains the preferred AI chip. Demand signals for Vera Rubin, Nvidia’s next platform, are described as very strong. Growth constraints now come more from complementary hardware like storage, memory, and servers rather than Nvidia’s own supply capacity.
Wells Fargo Projects Strong Multi-Year Growth
Wells Fargo’s higher price target stems from updated projections for Nvidia’s data center business. The bank sees continued momentum in hyperscale capital expenditure driving results.
The firm now projects fiscal year 2026 revenue of $209.2 billion with earnings per share of $4.61. For FY27, Wells Fargo expects revenue of $301.6 billion with EPS of $7.05. FY28 revenue is forecast at $383.2 billion with EPS of $8.90.
Data center revenue specifically is expected to reach $186.6 billion in FY26. That represents 62 percent year-over-year growth. FY27 data center revenue is projected at $276.4 billion, a 48 percent increase. FY28 is forecast at $356.5 billion, up 29 percent.
Wells Fargo used a consistent calendar year 2027 price-to-earnings multiple of around 30x in its valuation model. The firm cited Nvidia’s strong growth trajectory and leading position in data center and AI markets as justification.
Both banks expect Nvidia to report later in the quarter. Morgan Stanley noted demand signals across customers and suppliers point to faster growth than consensus estimates suggest. Wells Fargo maintained its Overweight rating based on the company’s continued strength in hyperscale spending.
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