Nvidia(US:NVDA) BOCOM International·2026-02-28 00:20Investment Rating - The investment rating for the company is "Buy" with a target price raised to $260, indicating a potential upside of 40.6% from the current price of $184.89 [5][16]. Core Insights - The report highlights enhanced visibility for long-term growth, particularly with the upcoming GTC product roadmap, which has led to an upward revision of the target price [2][12]. - The company is expected to achieve significant revenue growth, with projected revenues of $215.94 billion in 2026, reflecting a year-on-year increase of 65.5% [3][18]. - The management has indicated strong demand visibility for several quarters ahead, particularly in the AI sector, which is expected to drive further revenue growth [9][10]. Financial Overview - Revenue projections for the fiscal years are as follows: - 2025: $130.50 billion - 2026: $215.94 billion - 2027E: $354.50 billion - 2028E: $455.76 billion - 2029E: $500.56 billion - Year-on-year revenue growth rates are projected at 114.2% for 2025, 65.5% for 2026, and 64.2% for 2027 [3][18]. - Net profit is expected to grow from $74.27 billion in 2025 to $116.99 billion in 2026, with a projected EPS of $4.77 for 2026, reflecting a 59.4% increase [3][18]. - The company maintains a strong gross margin, with a Non-GAAP gross margin forecasted at 75.2% for FY1Q27 [8][12]. Market Position and Competitive Landscape - The report notes that the top five cloud service providers (CSPs) are expected to exceed $700 billion in capital expenditures for CY26, which is significantly higher than market expectations [9]. - The company is positioned to benefit from a diversified customer base, with non-CSP clients growing faster than cloud vendor revenues, enhancing long-term growth confidence [10][12]. - The upcoming GTC event is anticipated to showcase new products, including CPUs, GPUs, and DPUs, which will help maintain a competitive edge in the market [11][12].