Banking giant updates Nvidia stock price

Core Viewpoint - UBS maintains a bullish outlook on Nvidia, highlighting strong long-term demand and margin strength, with a price target of $245, indicating nearly 40% upside potential [1][4]. Group 1: Company Performance - Nvidia reported record quarterly revenue of $68.1 billion, reflecting a 73% year-over-year increase and a 20% sequential rise [9]. - Data center revenue surged 75% annually to $62.3 billion, driven by robust demand for AI chips [9]. - Nvidia's management announced a strategic partnership with Coherent, involving a $2 billion investment to enhance optics technology and expand U.S.-based manufacturing [10]. Group 2: Market Position and Growth Drivers - UBS expressed increased confidence in Nvidia's networking expansion and long-term profitability following discussions with CFO Colette Kress [4]. - The company aims to become the largest global networking player, targeting to exceed the combined revenue of all other networking semiconductor suppliers by year-end [6]. - Hyperscale cloud providers are planning significant compute capacity expansions by 2027, indicating strong future demand [4]. Group 3: Analyst Sentiment and Price Targets - UBS maintains earnings per share estimates of approximately $12.50 for 2027 and $15 for 2028 [7]. - Across Wall Street, Nvidia holds a 'Strong Buy' consensus based on 39 analyst ratings, with 37 recommending a buy [7]. - The average 12-month price target for Nvidia is $273.38, suggesting about 54% upside from the last traded price, with targets ranging from $220 to $352 [8].