New Nvidia Price Target After $45 Billion Sidestep

Bringing a helping hand to a sizable move in U.S. equity futures is the market reaction to Nvidia’s NVDA April quarter results.

The company once again topped market consensus forecasts led by its Data Center business, which catapulted higher by more than 70% year over year. For the current quarter, Nvidia guided its top line to $44.10 billion to $45.90 billion, sidestepping the $45.92 billion consensus forecast by sharing that its guidance reflects a loss in H20 revenue of approximately $8 billion. More importantly to us, management reaffirmed expectations for gross margins to rebound into the mid-70s in the coming quarters from 71.3% in the April quarter as Blackwell's profitability continues to improve.

As one might suspect, we are seeing a fresh wave of NVDA price target increases on Thursday morning, with Piper Sandler, Citi and BofA upping theirs to $180 from $150 to $160. We, too, will lift our NVDA target but to $175 from $160, and plan on revisiting it further based on upcoming monthly reports from Taiwan Semi TSM and Foxconn, as well as AI and data center capital spending comments made during the June quarter earnings season.

While we expect most companies will reiterate existing spending plans, we will be listening intently for any initial thoughts about 2026 capex plans.

We’ll have more in-depth comments about Nvidia’s results later on Thursday morning, but we would remind you that should the NVDA position size cross past 4.5% of the portfolio, some prudent action may be called for. While we watch that level, we’ll also be rummaging through quarterly results and guidance this morning from Best Buy BBY, Hormel Foods HRL and Kohl’s KSS on Thursday morning.

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At the time of publication, TheStreet Pro Portfolio was long NVDA.