Ignoring the uncertainty of its Chinese business, NVIDIA has had its target price raised by multiple major banks

The Zhitong Finance APP noted that despite uncertainties surrounding the H20 chip in the Chinese market, NVIDIA's (NVDA.US) financial report and performance guidance clearly conveyed one message to investors: the artificial intelligence spending boom is still accelerating.

Morgan Stanley analyst Joseph Moore wrote in a client report, "Market sentiment has turned more optimistic, and the company has still crossed a higher threshold," "A few weeks ago, the consensus expectation was still $50 billion with concerns about digestion, but it has now risen to $53 billion (including some expectations from China, but not reflected in the guidance). This $7 billion incremental revenue guidance excluding the Chinese market—setting a record for the company's quarterly dollar revenue growth—was achieved in just one quarter. According to management's statements during the conference call and our ongoing verification, this still represents unmet real demand. The continued strength of the Hopper architecture confirms this point; due to the severe shortage of computing power, customers are even still purchasing Hopper products from three years ago to meet some of their needs."

Moore added that the outlook for the Chinese business is "difficult to predict," and NVIDIA's management was cautious during the earnings call. However, he pointed out that the $5.4 billion revenue guidance for the October quarter confirms the real demand for AI. Moore gave NVIDIA an "Overweight" rating and slightly adjusted the target price from $205 to $210 after the earnings report.

Jefferies analyst Brian Curtis also praised the company, noting that the demand for Hopper and Blackwell architectures is "rock solid." "The broader demand outlook remains stable: a $3 million investment in GPUs can now yield a return of $30 million in token revenue, accelerated capital expenditures from hyperscale enterprises, and sovereign AI is expected to contribute $20 billion in revenue this year," Curtis wrote in the report, "All products in the Hopper and Blackwell lines continue to sell out, and even unrestricted customers are purchasing H20 chips. As the situation in China gradually resolves, there is still ample growth space for computing and networking businesses." He gave a "Buy" rating and raised the target price from $200 to $205.

Wedbush Securities analyst Dan Ives believes this financial report and guidance further embellish NVIDIA's prospects. "As AI infrastructure investment continues to grow (the company expects the total scale to reach $30-40 trillion by 2030), the chip sector remains NVIDIA's domain, and other players can only pay 'rent'—more sovereign entities and enterprises are lining up for the world's most advanced chips," he wrote in the report.

Stone Fox Capital portfolio manager pointed out that even at a 25 times price-to-earnings ratio for the fiscal year 2028, the stock is still "cheap," "considering the potential for further upside from exceeding expectations, raising guidance, and future inclusion of chip sales in China."