Oppenheimer reiterated its Outperform rating and $265 price target on Nvidia on August 20, ahead of the company's August 26 earnings report. The firm expects Nvidia to beat second-quarter estimates and projects more than $1 trillion in cumulative revenue from its GB200, GB300 and VR200 platforms between 2025 and 2027.
Oppenheimer is holding its Outperform rating and $265 price target on Nvidia, reiterated on August 20, even as the stock has had a rough few weeks. Bond yields spiked, the broader market sold off, and AI infrastructure names got hit harder than most heading into next week's report.
Oppenheimer sees a beat-and-raise quarter
The firm expects Nvidia to beat second-quarter estimates and deliver a stronger-than-expected third-quarter outlook. It also projects more than $1 trillion in cumulative revenue from Nvidia's GB200, GB300 and VR200 platforms between 2025 and 2027. That figure reflects the scale of what hyperscalers and AI developers are committing to spend on infrastructure.
Nvidia trades at a P/E of 33.64 with a PEG ratio of 0.3, and has delivered 71% revenue growth over the past 12 months. Market cap sits at $5.31 trillion, with a gross profit margin of 74%.
Blackwell Ultra ramp anchors the near-term case
Oppenheimer's near-term thesis rests on Blackwell Ultra. The next-generation VR200 system is expected to ramp this quarter, adding momentum to the data center business in the second half of the year. Its performance-per-watt advantage matters because AI data centers consume enormous amounts of electricity, and a chip that does more work per watt reduces operating costs.
Nvidia guided to $91 billion in second-quarter revenue, plus or minus 2%, with gross margin targets of approximately 75%. Wall Street's average estimate sits slightly above that at $91.9 billion, and the guidance excludes any data center compute revenue from China.
Rivals set a wide range of price targets
Oppenheimer is not alone in its bullish stance. Stifel reiterated a Buy at $282, and TD Cowen maintained Buy at $275. Bank of America's Vivek Arya set a $350 target and models third-quarter guidance of $107 billion to $108 billion, while Goldman Sachs' James Schneider holds a Buy with a $285 target.
Moody's has affirmed Nvidia's Aa1 senior unsecured rating with a positive outlook, and S&P Global Ratings maintained its AA credit rating. The spread between Oppenheimer's $265 target and BofA's $350 reflects genuine disagreement over how much future growth is already priced into the stock.
What Nvidia needs to do on August 26 is clear: beat the quarter, raise guidance, and show that Blackwell Ultra is ramping as expected. A clean print with strong forward commentary could change the mood quickly, but merely meeting expectations while the market stays nervous about bond yields may not be enough.
Source: TheStreet
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