Nvidia (NVDA) Stock: Analyst Raises Price Target as Earnings Approach – Here’s Why

TLDR

• Nvidia stock dropped 0.7% in premarket trading on Thursday despite analysts raising price targets ahead of the company’s Nov. 19 earnings report.
• Oppenheimer raised its price target to $265 from $225, while Susquehanna increased its target to $230 from $210, both citing strong AI demand.
• The company announced $500 billion in cumulative orders for its high-end GPU products at its recent Washington D.C. conference, with many deliveries expected over the next five quarters.
• Analysts project Nvidia will generate $287 billion in revenue next year, representing 39% growth, though some estimates range as high as $412 billion.
• AI startup Anthropic plans to invest $50 billion in American data-center infrastructure, potentially using Nvidia chips alongside processors from Amazon and Google.

Nvidia shares slipped in premarket trading Thursday even as Wall Street analysts boosted their price targets on the stock.

NVIDIA Corporation, NVDA

The stock fell 0.7% to $192.45 before the opening bell. Other chip makers also declined, with Advanced Micro Devices down 0.8% and Broadcom falling 0.2%.

The market awaits Nvidia’s third quarter fiscal 2026 earnings on Nov. 19. The report comes as investors debate whether AI-related stocks have become overvalued.

Oppenheimer analyst Rick Schafer raised his price target to $265 from $225. He maintained an Outperform rating on the stock.

Susquehanna analyst Christopher Rolland also increased his target. He raised his price to $230 from $210 with a Positive rating.

Strong Order Book Points to Growth

Nvidia revealed impressive demand figures at its recent Washington D.C. GPU Technology Conference. The company announced $500 billion in cumulative orders for its high-end products.

A large portion of these orders will be delivered over the next five quarters. For context, Nvidia generated $165 billion in revenue over the past 12 months.

The backlog suggests growth could exceed Wall Street projections. Analysts have historically underestimated Nvidia’s performance.

Fifty-two analysts project average revenue of $287 billion for next year. That represents 39% growth from current levels.

However, estimates vary widely. The low-end projection sits at $226 billion while the high end reaches $412 billion.

Valuation Looks Reasonable

Some market watchers believe Nvidia’s stock has become expensive. The data suggests otherwise.

If Nvidia maintains its recent 60% revenue growth rate, 2025 sales could hit $331 billion. At the company’s 52% profit margin, that would mean $172 billion in profits.

The current market cap of $4.75 trillion puts the stock at 28 times next year’s projected earnings. That’s a reasonable multiple for a company growing at Nvidia’s pace.

AI startup Anthropic announced Wednesday it plans to invest $50 billion in American data-center infrastructure. The company will partner with cloud-computing firm Fluidstack on sites in Texas and New York.

Anthropic didn’t specify which chips it would use. The company has previously relied on a mix of processors from Nvidia, Amazon.com, and Google.

Nvidia’s GB300 hardware is expected to continue ramping up production in the second half of the year. This should help the company meet strong customer demand and convert its massive order backlog into actual sales.

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