Ahead of NVIDIA's (NVDA.US) quarterly earnings release scheduled for August 27th Eastern Time, a large group of prominent Wall Street analysts covering semiconductor industry stocks have recently shown remarkable consensus in raising both earnings growth expectations and price targets for this core beneficiary of the global AI infrastructure construction wave, whose market capitalization has exceeded $4 trillion. Most top-tier analysts believe that NVIDIA's market cap has the potential to break through the historically significant milestone of $5 trillion amid the booming AI infrastructure backdrop.

Wall Street's competitive upgrades of earnings expectations and 12-month price targets for the "world's highest market cap company" NVIDIA stand in stark contrast to this week's weak stock performance—three consecutive days of decline with cumulative losses of approximately 4%. This suggests that while the company's stock is experiencing profit-taking pressure following a surge of over 70% since April lows, Wall Street remains highly optimistic about NVIDIA's earnings growth prospects and stock price expectations.

**NVIDIA Price Targets Climb Ahead of Earnings—Wall Street Analysts Intensively Raise 12-Month Stock Price Expectations**

NVIDIA currently maintains a market capitalization of approximately $4.3 trillion, still ranking first globally and significantly ahead of second-place Microsoft (MSFT.US), which has a current market cap of about $3.75 trillion. Wall Street analysts firmly believe that the unprecedented global artificial intelligence infrastructure wave centered on AI computing hardware remains in full swing, with continuously explosive global AI computing demand expected to drive NVIDIA's earnings to continue on an explosive growth trajectory, while its stock price is poised to continue its "super bull market performance."

The continuously explosive expansion of global AI computing demand, combined with increasingly massive AI infrastructure investment projects led by the U.S. government and tech giants' continuous massive investments in building large-scale data centers, largely means that for investors who have long favored NVIDIA and the AI computing supply chain, the global "AI faith's" super catalyst effect on computing leaders' stock prices is far from over. They are betting that stock prices of AI computing supply chain companies led by NVIDIA, TSMC, and Broadcom will continue to演绎 "bull market curves."

In the view of Wall Street investment giants Loop Capital and Wedbush, the global artificial intelligence infrastructure investment wave centered on AI computing hardware is far from over and is merely at the beginning. Driven by an unprecedented "AI computing demand storm," this round of AI investment wave could reach a scale of up to $2 trillion.

**Wall Street's "Rock-Solid" Recognition of NVIDIA's Earnings Expectations**

According to compiled institutional statistics, at least nine Wall Street analysts raised NVIDIA's 12-month price targets just this week, with many analysts shifting from cautious to actively bullish stances, raising the chip giant's average price target by 3% to nearly $194, creating a historic high expectation for Wall Street's NVIDIA price targets.

According to Bloomberg statistics, this average price target level implies over 10% potential upside compared to NVIDIA's Wednesday closing price. Among the numerous Wall Street investment institutions, the most optimistic analyst price target for NVIDIA reaches an astonishing $250, meaning this analyst is betting NVIDIA's market cap will break through the $6 trillion threshold.

"What you're seeing is rock-solid bullish recognition from Wall Street's top analysts regarding NVIDIA's earnings growth expectations," said Brian Mulberry, client portfolio manager at Zacks Investment Management. "Analysts are raising forecasts because they have no choice; this stock won't slow down its upward momentum."

Of course, excessively high expectations also mean that any disappointing detail from NVIDIA could trigger tech stock selling, thereby driving global stock markets lower. "If there's some degree of disappointing situation, the impact could be very significant," Mulberry noted. "However, the possibility of NVIDIA disappointing the market is very low."

These raised expectations come amid continued pullbacks in tech giant stocks including NVIDIA, which have previously pulled the S&P 500 back from historical highs, with the index retreating about 1.5% from its historical peak. With large tech stocks trading at elevated valuations, investors are seeking to take profits before Fed Chairman Powell's speech at the Jackson Hole global central bank meeting and reallocating funds to lower-risk small and mid-cap and value market sectors.

With better-than-expected PPI and retail data, market concerns about Fed rate cuts in September have intensified, also exacerbating selling pressure ahead of Powell's Friday speech.

**Analysts Raise NVIDIA Price Targets Ahead of Earnings—Weekly Average Price Target Up Over 3%**

NVIDIA's stock price fell for the third consecutive day through Thursday's close but has still risen about 30% since the company's last earnings release in late May. From the significant decline caused by global stock market selling triggered by the Trump administration's "liberation day" equivalent tariffs in early April, to the subsequent rebound process of about 70%, NVIDIA contributed over 180 points to the S&P 500's significant gains during this period, exceeding any other constituent stock, driving the S&P 500 to repeatedly hit new highs and expanding its weight in both the S&P 500 and Nasdaq 100 indices.

Given the stock's weight in the S&P 500—it currently ranks among the largest constituents alongside Apple and Microsoft, and its core importance in the global AI computing supply chain, NVIDIA has long faced exceptionally high expectations from Wall Street analysts and investors. NVIDIA has consistently maintained an explosive earnings growth trajectory since 2023, rarely disappointing analysts and investors in quarterly financial data and earnings outlook, which is also the core supporting logic for the AI investment boom that began in early 2023 and continues today.

So far this earnings season shows that the spillover effects on this chip giant's quarterly performance are positive, as major global tech companies including Facebook parent Meta Platforms, Microsoft, Google, and Amazon have all increased their capital expenditure commitments by tens of billions of dollars. NVIDIA derives approximately 40% of its revenue from these four tech giants, making them an important force behind NVIDIA's continued substantial earnings growth.

**China Market Expected to Become "Major Incremental Positive" for NVIDIA**

Wall Street analysts generally expect the chip giant to once again report a financial quarter with double-digit revenue growth next week. Despite continued questions about details of NVIDIA's sales in the Chinese market, any positive updates should provide upward rather than downward momentum.

"In Wall Street models, China market risks have been de-risked, and the key is to keep China building AI applications on NVIDIA's AI ecosystem platform," wrote the Cantor Fitzgerald analyst team led by CJ Muse in an August 18 report, significantly raising NVIDIA's 12-month price target from $200 to $240, meaning the institution is betting NVIDIA's market cap will exceed $5 trillion and approach $6 trillion. "Any progress in the China market would be welcomed."

Other institutions that raised NVIDIA price targets this week include Wedbush, KeyBanc, UBS, Morgan Stanley, and Susquehanna, among Wall Street's largest investment institutions. According to Bloomberg compiled data, nearly 90% of Wall Street analysts covering NVIDIA give it a "buy" equivalent rating.

According to sources, the stock analyst team from Wall Street financial giant Bank of America recently stated, "According to media reports, in exchange for a 15% penalty, the U.S. government is willing to allow NVIDIA/AMD to ship specific AI chips (H20/MI308) to the Chinese market. We believe this is a very significant incremental positive for both chip companies."

"The core logic is that NVIDIA/AMD likely have sufficient pricing power to offset part of the 15% penalty; even bearing the 15% penalty, both giants can recover a large portion of gross profit, while the recovery of the Chinese market maintains the original and extremely important goal of mutual achievement with China's AI computing ecosystem, and is expected to somewhat constrain domestic Chinese competitors," the Bank of America analyst team stated.

Bank of America maintains its most optimistic "buy" rating for NVIDIA and AMD stocks, with 12-month price targets continuing at $220 and $200 respectively.

**AI Computing Storm Continues to Sweep the Globe! Next Stop: NVIDIA Sets Sail for $5 Trillion?**

Analysts from Wedbush stated in a latest report that with the increasing use cases of generative AI applications and AI agents among enterprises and consumers, NVIDIA's upcoming quarterly earnings may become another "positive catalyst" for the AI computing supply chain. The report noted that according to Wedbush channel surveys, demand for NVIDIA's Blackwell architecture series AI chips may be 10 times the supply.

Wedbush believes the world is in the initial stages of multi-year AI infrastructure construction and views this earnings report as important validation of this cycle. "We remain extremely optimistic that investors still underestimate the super growth wave from the $2 trillion that global enterprises and governments will invest in artificial intelligence infrastructure and applications over the next three years," Wedbush analysts stated.

Wedbush raised its NVIDIA price target from $175 to $210 in its latest research report. Notably, most Wall Street analysts recently have NVIDIA price targets exceeding $210, meaning they are betting NVIDIA's market cap will break through the $5 trillion threshold.

Mizuho and KeyBanc both raised NVIDIA price targets to $215, while TD Cowen and Cantor Fitzgerald provided price targets of $235 and $240 respectively. Additionally, at Wall Street investment giant Loop Capital, NVIDIA's market cap is expected to break through $6 trillion, with the institution providing a $250 price target—Wall Street's highest.

With breakthrough AI application tools like AI agents penetrating various global industries bringing massive "AI inference computing demand," this means the future prospects for AI computing infrastructure demand in areas such as AI chips, HBM storage systems, enterprise SSDs, and high-performance networking and power equipment will continue to be limitless.

Companies' urgent needs to improve efficiency and reduce operational costs have recently driven the widespread application of two core categories of AI applications—generative AI applications and AI agents. The emergence of AI agents means artificial intelligence is beginning to evolve from information assistance tools to highly intelligent productivity tools.

AI agents represented by OpenAI Deep Research and Manus can automate repetitive tasks, perform big data analysis and summarization based on incredibly powerful AI large models, provide real-time monitoring insights and reports, and make appropriate decisions in extremely short time frames for extremely complex situations, thereby improving enterprise operational efficiency. For personal learning and work efficiency, the logic is basically similar for increasing effectiveness.

AI agents can also efficiently participate in all stages of large-scale projects across various global fields from blueprint planning to implementation, significantly accelerating project progress.

Bloomberg Intelligence compiled analyst expectations show that Wall Street analysts generally expect Google, Microsoft, Facebook parent Meta, and Amazon—these four tech giants—to spend over $350 billion this year on data center expansion or construction centered on AI computing infrastructure, meaning potential year-over-year growth of nearly 50% based on strong 2024 growth, with expectations of exceeding $450 billion by 2026.

Loop Capital, which is bullish on NVIDIA stock to $250, wrote in its research report: "Our research shows we are entering the next 'golden wave' of artificial intelligence applications, and NVIDIA remains at the forefront of the important stage where the next wave of demand is far stronger than expected." The institution predicts that by 2028, global cloud computing giants + tech enterprises + sovereign AI will cumulatively spend approximately $2 trillion on computing infrastructure centered on NVIDIA AI GPUs.