Wells Fargo Raises Nvidia Price Target to $950 Ahead of Earnings

Wells Fargo analyst Aaron Rakers has raised his price target on NVIDIA Corporation (NVDA) to $950 from $800, while maintaining an Overweight rating, according to a report by TheStreet. The adjustment comes just days before Nvidia's fiscal fourth-quarter earnings release.

Recommendation Change

• Previous Price Target: $800
• New Price Target: $950
• Rating: Overweight
• Change: +18.75%

Analyst's Rationale

Rakers ranks in the top 1% of Wall Street analysts by performance. He built an entirely new model to justify the price target, analyzing expected demand for Nvidia's AI chips. He believes demand for data center GPUs will remain strong, driven by major tech companies' investments in AI infrastructure.

Context

The price target hike coincides with market anticipation of Nvidia's Q4 results, with analysts expecting record revenue. Nvidia's stock has risen about 80% over the past year, outperforming the Nasdaq. Other analysts, such as those from Bank of America and Morgan Stanley, have price targets ranging from $900 to $1,000.

What to Make of It

Wells Fargo's upgrade underscores strong confidence in Nvidia's growth trajectory amid the AI boom. However, investors should note the stock trades at high earnings multiples, making it sensitive to any growth slowdown.