There are still four Wall Street bears left on Nvidia. Here’s what they are saying about results
Some analysts weren’t satisfied with Nvidia’s latest quarterly figures. The graphics processing unit manufacturer posted second-quarter adjusted earnings of $1.05 per share, beating the $1.01 per share analysts polled by LSEG had estimated. Nvidia’s $46.74 billion revenue also beat expectations of $46.06 billion and marked a 56% increase in the quarter from $30.04 billion a year ago. However, shares of Nvidia fell as much as 5% overnight after its data center revenue came up short of expectations for the second quarter in a row. The last quarter also marked Nvidia’s slowest period of growth since mid-2023, when the AI trade was in full swing. Most analysts covering the stock remained bullish despite the slight data center blemish — as the company’s overall third-quarter revenue guidance did not include potential sales in China. Factoring those in, Nvidia’s top line could get a $2 billion-$5 billion boost in Q3 . Many even raised their price targets on the stock. Still, Seaport Research Partners, D.A. Davidson, Deutsche Bank and HSBC were cautious. Seaport kept its sell rating on shares, while the latter three reiterated hold-equivalent ratings. Here’s what they had to say about Nvidia’s latest earnings. Seaport Research Partners: Sell rating, $100 price target The investment firm’s price target implies the risk of 45% downside ahead, based on Nvidia’s Wednesday closing price of $181.60 per share. “Nvidia printed a set of largely in-line results. The Blackwell ramp is underway and is progressing in-line with expectations, but as we have noted, there seems to be little scope for upside this year. Sales to the PRC [People’s Republic of China] remain a swing factor as the company awaits approval to ship there. We remain cautious on the company’s near term outlook and broader concerns about the industry’s ability to digest the massive AI investments this year,” the firm said. Deutsche Bank: Hold rating, $180 price target Deutsche’s price target, raised from $155, implies shares will be little changed over the coming year. “Overall, we believe that NVDA remains the technology leader in enabling AI, with expectations for powerful revenue growth underscored by continued and diversifying demand within a rapidly growing TAM. While the company did not include China revenue in its guidance, we believe they could likely benefit from such sales within CY26 and have therefore included this resumption in our out year estimates … Based on these higher estimates and a consistent P/E multiple of 27x, our P/T rises to $180, with our view of NVDA’s dominance remaining unchanged, but fairly valued,” the bank said. D.A. Davidson: Neutral rating, $195 price target The investment firm raised its price target to $195 per share from $135, indicating upside potential of 7%. “We maintain our NEUTRAL rating and raise our price target to $195 from $135 on NVIDIA following mixed 2Q26 results with data center revenue coming in slightly lower than expected, and sentiment surrounding the quarter largely being driven by continued concern around the company’s ability to sell H20s into China. That being said, our work around AI models, particularly on the algorithmic side, are leading us to increasingly believe that demand for compute is unlikely to subside in the foreseeable future, given trends we’re seeing in pre-training, post-training, and inference,” D.A. Davidson said. HSBC: Hold rating, $200 price target HSBC’s forecast is roughly 10% above Nvidia’s current valuation. “We raise our FY26 EPS estimate by 3% to reflect slightly better margin expectations but keep FY27 estimates largely unchanged. Our TP of USD200 is based on an unchanged target FY27 PE of 31x and implies c10% upside. We maintain our Hold rating as we expect the near-term supply inconsistency and China uncertainty to remain an overhang. To turn more bullish, we would need to see further upward revision for 2026 CSP capex,” the firm said. — CNBC’s Kif Leswing contributed to this report.
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