Oppenheimer Raises NVIDIA Price Target to $265 Ahead of Earnings

Core Viewpoint - Oppenheimer raised its price target for NVIDIA Corp. to $265 from $225, maintaining an Outperform rating, driven by optimism ahead of the company's earnings report [1] Group 1: Financial Projections - Oppenheimer anticipates upside potential to NVIDIA's fiscal third-quarter and fourth-quarter consensus estimates of $54.7 billion and $61.5 billion in sales, and $1.25 and $1.42 in EPS, respectively [1] - CEO Jensen Huang projected cumulative revenues from Blackwell and Rubin platforms to reach $500 billion by the end of 2026 [3] Group 2: Market Demand and Trends - Hyperscalers and cloud service providers are increasing capital expenditures due to rising demand for artificial intelligence infrastructure [2] - NVIDIA's rack-scale NVL72 system is recognized as the leading AI performance-per-watt platform, although supply tightness and growing backlogs are noted [2] Group 3: Market Opportunity - Oppenheimer estimates NVIDIA's total addressable market at $4 trillion, covering cloud, sovereign, and enterprise markets, with a significant $50 billion market opportunity in China not yet included in models [4] - The firm maintains a bullish outlook, asserting that NVIDIA is "best positioned to lead the AI era" [4]