UBS Raises NVIDIA Price Target to $850 Amid Continued Price Hikes
UBS Raises Price Target for NVIDIA to $850
UBS recently raised its price target for NVIDIA (NASDAQ:) to $850 from $580, maintaining a Buy rating on the stock. The bank cited customer feedback indicating that the company continues to raise prices.
Extended Lead Times and Strong AI Compute Demand
In an earnings preview note, UBS highlighted that customer discussions confirmed NVDA’s lead times have significantly increased over the past few months. This indicates that “shipment slots are still available in C2H:24.” Despite this, strong demand for AI compute capacity suggests significant upside potential to shipments and revenue.
Anticipated Data Center Revenue and Capacity
UBS expressed optimism in NVDA’s data center performance, projecting an increase of $2.5-3 billion in revenue compared to street estimates. The firm anticipates enough capacity for NVDA to guide $25-26 billion in total revenue, attributing this to supply chain work.
Price Hikes and Market Dynamics
According to customer feedback, NVDA is continuing to raise prices, even on H100, despite the pending ramp of H200 and B100. This highlights the evolving dynamics of the market and the company’s approach to pricing.
