Nvidia stock gains fresh analyst support ahead of its quarterly earnings, with Wall Street betting on strong AI chip demand and GB300 momentum despite China-related challenges.
Key Takeaways
- Stifel, Baird, and others raised their price targets on Nvidia, citing strong demand for its next-gen GB300 chips and AI infrastructure dominance.
- Nvidia faces uncertainty in China after local authorities advised against buying its H20 processors, potentially pressuring future revenue.
- Second-quarter revenue is expected around $46 billion, with zero contribution from China despite a U.S. export control reversal.
- Analysts still expect a “beat and raise” quarter, driven by Blackwell GPU deployments and sustained demand in data centers.
What Happened?
Wall Street analysts are turning bullish on Nvidia ahead of its fiscal second-quarter earnings, with several raising their price targets despite lingering concerns about the company’s position in China. Stifel, Baird, UBS, and Morgan Stanley are among those citing Nvidia’s continued strength in AI infrastructure, particularly its next-generation GB300 chips set for launch later this year.
Analysts Stay Bullish Despite China Tensions
Stifel raised its price target for Nvidia from $202 to $212, stating the stock remains attractively valued given its leadership in AI infrastructure. The firm anticipates a “beat and raise” earnings scenario, noting that shipments of Nvidia’s H20 processors resumed in July.
Stifel expects demand for GB300 chips to ramp up through the end of the year, even as hyperscaler demand, potential margin pressure from GB300 production, and China export restrictions remain key investor concerns.
Baird went further, raising its Nvidia target from $195 to $225, pointing to a “significant acceleration” in GB200 sales and high expectations for the upcoming GB300 performance boost.
Evercore ISI and UBS also raised their targets to $214 and $205 respectively. UBS projected Nvidia’s fiscal Q2 revenue could hit $46 billion, and Q3 could climb to $57 billion if China sales resume.
China Market Adds Complexity
Despite optimism, Nvidia faces fresh turbulence in China. Reports indicate that the Chinese government warned domestic companies against purchasing Nvidia’s H20 processors, prompting the company to reportedly pause production. While the U.S. has allowed limited H20 shipments, Nvidia may need further approvals to offer more advanced Blackwell-based chips like the B30A.
Some analysts believe China’s moves are part of a broader push to promote domestic alternatives, such as Huawei’s chips. Nvidia is also pursuing approval to sell even more powerful AI chips in China, which could be a game-changer if granted.
Stifel Maintains Buy on $NVDA, Raises PT to $212 from $202
— Wall St Engine (@wallstengine) August 25, 2025
Analyst comments: “With F2Q26 results AMC 8/27, we expect a beat/raise scenario with H20 shipments resumed in July, coupled with accelerating broad-based demand for GB300 infrastructure. Our supply chain discussions…
Earnings Projections and Market Sentiment
Nvidia is set to report earnings after the bell on Wednesday, and expectations are high. According to FactSet, analysts expect:
- Adjusted EPS of $1.01 on revenue of $45.94 billion for Q2
- EPS of $1.20 on revenue of $53.23 billion for Q3
These figures mark substantial year-over-year growth. In Q2 last year, Nvidia posted an adjusted EPS of 68 cents on $30.04 billion in revenue.
Nvidia’s stock was recently trading at $180.93, holding flat ahead of the report. It had risen nearly 2 percent earlier in the day, following the latest round of analyst updates.
Market Implications Across Tech
The broader tech sector is closely watching Nvidia’s earnings. Wedbush analyst Daniel Ives noted the upcoming report could act as a “positive catalyst for tech stocks”, emphasizing that Nvidia’s performance is tied to the larger AI buildout expected over the next several years.
Morgan Stanley’s Joseph Moore reaffirmed his overweight rating and $206 price target, while JPMorgan highlighted strong capex spending from hyperscalers as a signal of robust AI chip demand.
William Blair’s Sebastien Naji echoed this, predicting ongoing AI investment from cloud and sovereign players. According to him, Nvidia’s upcoming results will further validate the demand strength in the sector.
CoinLaw’s Takeaway
I think Nvidia’s positioning remains incredibly strong despite the noise around China. In my experience, when multiple top-tier analysts start lifting targets like this, especially right before earnings, it’s a sign of confidence that goes beyond short-term concerns. The fact that Nvidia’s GB300 and Blackwell deployments are seen as game-changers tells me that this stock still has plenty of runway. The China issues are real, but they feel more like speed bumps than roadblocks. I’ll be watching the earnings closely, especially guidance for Q3, because that’s going to set the tone for the rest of the year in AI tech.
