NVIDIA (NVDA) AI infrastructure spending remains strong, with leading cloud providers and sovereign initiatives indicating ongoing investment well into 2025 and beyond, Wedbush Securities said in a note Thursday.

Wedbush believes a healthy capex from hyperscale and neocloud providers, solid uptake of Nvidia's B200/GB200 processors, and early indications of a recovery in China server deployments after the granting of US export licenses.

Nvidia will report fiscal Q2 results on Aug. 27 after hours.

The firm has raised its earnings per share and revenue forecasts through 2027, valuing Nvidia at roughly 34 times its projected 2027 earnings of $6.10 per share, plus $1.83 per share in net cash. Analysts surveyed by FactSet expect EPS of $5.97 for 2027.

According to the report, Dell (DELL) forecast a sharp ramp in the current quarter, Supermicro (SMCI) projected continued growth through fiscal 2026, and Lenovo (LNVGY) reported AI server revenue doubled in its latest quarter, whereas Meta (META) raising its guidance to reflect stronger AI-related capex.

Wedbush expects Nvidia's strong positioning in AI infrastructure to drive sustained momentum into 2026 and beyond.

The firm maintained it outperform rating on the stock, raising its price target to $210 from $175.

Shares of the company were up marginally recent Thursday trading.

Price: 175.79, Change: +0.39, Percent Change: +0.22