Susquehanna raised the price target on Nvidia’s (NVDA) stock to $230 from $210 ahead of the company’s third quarter fiscal 2026 results next week, Nov. 19.
The firm kept its Positive rating on the shares of Nvidia.
“We expect better results and guidance as GB300 is expected to continue ramping in 2H. For DC Compute, Al demand continues to be supported by ever-increasing hyperscale capex plans. The top five hyperscalers are now expected to increase capex spend by 69% YOY in 2025 (vs. Street estimates of +60% YOY prior to the quarter). Notably, hyperscaler capex is expected to grow 24% YOY in 2026, further supporting growth into 2026,” said the analysts.
The analysts added that on the supply side, read-throughs from Foxconn were also positive, as the company impressively achieved its 2025 Al server revenue target in just three quarters.
The analysts noted that Blackwell Ultra comes with a higher average selling price, or ASP, and therefore the mix-up of B300/GB300 will be important to support the double-digit percentage quarter-over-quarter revenue growth Susquehanna and the Street have modeled for both the third and fourth quarters.
“At NVIDIA DC GTC Jen Hsun noted visibility into >$500B of Blackwell and Rubin revenue through CY26. While we suspect this revenue number encompasses both Compute and Networking, this nonetheless implies upside to the Street’s cumulative FY26 and FY27 DC number given this target. On DC Networking, we expect further growth as the full networking ecosystem around GB300 continues to ramp, said the analysts.
For Pro Viz, the analysts expect generative Al and Omniverse to continue to drive growth here. Auto (smaller for Nvidia) reads are more mixed, as global electric vehicle, or EV, and internal combustion engine, or ICE, demand continues to be softer than expected, particularly outside China, and may be further impacted by tariffs/end of EV tax credits.
“Beyond the top line, we expect generally in-line gross margins, or GMs, for October as the company remains on the path to achieve mid-70s by year-end. We maintain our Positive rating and increase our price target to $230 from $210, as we still view Nvidia (NVDA) as having one of the largest opportunity sets ahead.”
Shares of Nvidia dipped by about 1% premarket on Thursday.