New Nvidia Price Target After Beat-and-Raise Quarter, $4 Trillion Update

While we keep our eyes on those technical levels we shared for the S&P 500, let’s turn and discuss Nvidia’s (NVDA) beat-and-raise quarter on Wednesday night, the same one that prompted numerous price target increases across Wall Street on Thursday morning. That’s right, we’ve seen the likes of Susquehanna, JPMorgan and Morgan Stanley lift their NVDA targets to $235 to $250 from $215 to $230, but it was Evercore ISI’s jump to $352 that really caught our attention.

With that setting the table, let’s break it down…

Nvidia’s October 2025 Quarterly Results and Guidance

As you probably know by now, Nvidia delivered October quarter EPS of $1.30 on revenue of $57 billion, besting the market expectations of $1.26 and $54.90 billion. As important, Nvidia’s October quarter revenue rose 62.5% year over year and 22% sequentially, which was a quicker pace than the nearly 56% year over year increase posted in the July quarter and the 6% increase compared to the April 2025 quarter. Data Center, which continued to be the company’s largest segment by a wider margin at 90% of total revenue, drove the year-over-year and sequential revenue gains, which were modestly offset by the slower-growing gaming and automotive segments.

While down from 74.6% in the year-ago quarter due to the continued ramp of Blackwell capacity, as expected, Nvidia made progress compared to gross margins of 72.4% in the July quarter, hitting 73.4% in the October quarter.

Cash, cash equivalents and marketable securities were $60.6 billion, up from $38.5 billion a year ago and $56.8 billion a quarter ago, even after Nvidia repurchased $12.5 billion in shares during the quarter.

For the current quarter, which ends in January 2026, Nvidia guided total revenue to $65.0 billion, nicely ahead of $62.17 billion consensus, with further improvement in gross margins. Management targets those margins to reach 74.5% to 75.5%, which makes sense as it continues to move down the Blackwell learning curve. For calendar 2026, Nvidia currently targets gross margins in the mid-70% which will see further Blackwell efficiencies mitigated by higher component costs.

What Did We Learn From Nvidia’s Earnings Call?

All eyes were on Nvidia’s earnings call last night as folks waited to hear from CEO Jensen Huang. He came out swinging, sharing that Nvidia currently has visibility into $0.5 trillion in chip revenue from “the start of this year through the end of calendar year 2026."

Jensen also reiterated his bullish stance on the buildout of AI infrastructure, which he sees reaching $3 trillion $4 trillion on an annual basis by the end of the decade. Sizing up those figures explains how some get to the AI trade, still being in the early innings.

As you know, we prefer to follow adoption, usage and penetration data, which was rather telling for both the mobile phone industry as well as the dot-com buildout. On that front, the tell that we will continue to watch for will be a slowdown in the incremental growth rate for AI adoption, usage and penetration across the enterprise, consumers and other end markets.

When we look out to 2026, which will be Nvidia’s fiscal 2027, the prospect for higher gross margins on larger revenue means Nvidia should be delivering larger gains to its bottom line. We’re already seeing consensus fiscal 2027 EPS for Nvidia move higher to $6.86 compared to $6.44 30 days ago and $5.96 three months ago. Odds are we’ll see that number move even higher as more of Wall Street’s updated figures are added to the mix. That is giving us cover fire to lift our NVDA price target to $250 from $230.

Given our view that follow-through is key, we will want to see and hear similarly bullish comments next week from Dell (DELL) and HP (HPQ) when they report next week. After the Thanksgiving holiday, we’ll be looking for more affirmation from Taiwan Semi (TSM) and Foxconn (FXCOF) when they report their November revenue, and from Marvell (MRVL) when it reports on November 4.

At the same time, we will continue to follow not only adoption, usage and penetration levels, but also customer count figures from the likes of OpenAI, Anthropic, and others, as well as capital spending figures for Big Tech and other key players in the space.

What Does This Mean for the NVDA Shares?

While NVDA shares moved higher earlier on Thursday and have since reversed, along with the larger market, we are inclined to remain owners of the stock.

For those folks who are underweight the shares relative to the Portfolio, the next level of support to watch is $186.50, better known as the 50-day moving average. Coming up right behind that is the 100-day at $180.10. A positive test of either would make for a nice pickup point given our new price target.

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