Nvidia’s latest earnings report received a lukewarm market reaction, causing the stock to drop as investors were underwhelmed by the sales forecast. Despite this, Wall Street remains optimistic, with many firms raising their price targets on the stock. The company beat second-quarter revenue and earnings, but shares still slid before recovering slightly. Analysts believe Nvidia’s earnings report was strong enough to unlock further stock upside in the future.

JPMorgan raised their price target on Nvidia to $215, citing strong demand for Blackwell products supporting revenue guidance of $54 billion for the following quarter. DA Davidson increased their target to $195, noting sustained demand growth for inference in the AI sector. Melius raised their target to $240, highlighting Jensen Huang’s comments on data center capex potentially reaching $3-4 trillion by the end of the decade.

Truist raised their price target to $228, emphasizing Nvidia’s significant growth potential despite slightly below-expectation guidance. Morgan Stanley increased their target to $210, praising Nvidia’s second-quarter results and positive outlook. Analysts believe the company’s strong financial profile will continue to attract investors, especially with expected growth in AI infrastructure.

Read more at Yahoo Finance: Why Wall Street is boosting forecasts for Nvidia stock even higher after a lukewarm reaction to earnings