This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) traded nearly 2% higher on Friday after Wells Fargo raised its price target to $265 from $220.
The brokerage kept an Overweight view and said its new valuation reflects a stronger outlook for Nvidia’s data-center business. Wells Fargo now expects revenue to climb through fiscal years 2026 to 2028 as hyperscale customers continue to increase spending on artificial-intelligence infrastructure.
The firm’s updated model calls for fiscal 2026 revenue of $209.2 billion and earnings of $4.61 a share. It projects $301.6 billion in revenue for fiscal 2027 and $383.2 billion for fiscal 2028. Data-center sales make up most of that growth, with Wells Fargo estimating yearly gains ranging from nearly 30% to more than 60%.
Analysts also kept a roughly 30-times price-to-earnings multiple for calendar 2027, citing Nvidia’s position in AI and large-scale computing.
Other brokerages echoed the positive tone ahead of Nvidia’s upcoming fiscal third-quarter results. KeyBanc maintained an Overweight stance with a $250 target, while Oppenheimer moved its target to $265. Susquehanna lifted its forecast to $230, noting steady AI demand and rising tech-sector capital spending.