Despite NVIDIA's earnings guidance falling short of investor expectations, Wall Street analysts remain optimistic and are raising price targets for the world's most valuable company by market capitalization.

Analysts are focusing on NVIDIA's long-term prospects, particularly the production ramp-up of Blackwell AI chips and continued strong order demand. At least 10 firms raised their 12-month price targets following NVIDIA's earnings report on Wednesday, with the average target price increasing 3% to $202.60. JPMorgan, Truist Securities and other institutions emphasized that despite somewhat weak near-term guidance, the company's long-term growth trajectory remains solid.

Wall Street currently maintains an overwhelmingly bullish stance on NVIDIA, with 72 analysts giving buy ratings, only 7 maintaining hold ratings, and just 1 issuing a sell rating.

NVIDIA provided relatively modest revenue forecasts for the current quarter, projecting third-quarter sales of approximately $54 billion. While this figure meets Wall Street's average expectations, some analysts had previously predicted sales would exceed $60 billion. The company's stock declined about 1.9% in premarket trading, narrowing from earlier losses.

Institutions Significantly Raise Price Targets

Data shows at least 10 institutions raised their 12-month price targets following NVIDIA's earnings release, with the average target increasing 3% to $202.60, representing approximately 12% upside potential from Wednesday's closing price.

JPMorgan analyst Harlan Sur significantly raised his price target by 26% to $215 and reiterated an overweight rating on the stock. Sur highlighted the production ramp-up of Blackwell AI chips as a key factor:

"We believe NVIDIA's 12-month forward orders continue to exceed supply capacity."

Truist Securities analyst William Stein raised his price target by 9% to $228. While he acknowledged that "sales performance and guidance were both slightly below buy-side expectations," he emphasized "we view this as a minor blemish and focus on management's resilient long-term outlook."

Near-term Guidance Raises Concerns

NVIDIA's third-quarter revenue forecast of $54 billion, while meeting Wall Street's average expectations, failed to reach some analysts' optimistic predictions of over $60 billion. This relatively modest guidance has somewhat affected investor sentiment.

Morgan Stanley analyst Joseph Moore noted that while expectations entering earnings season were high, "the most important metrics were all validated." Moore raised his price target from $206 to $210. Since reporting first-quarter results in May, NVIDIA's stock has gained approximately 35%, adding over $1 trillion in market value.

However, the China market outlook remains a major uncertainty for NVIDIA. Morgan Stanley's Moore stated:

"The China market remains unpredictable, and management seems to maintain a cautious attitude toward resolving related issues."