NEW YORK, Feb 26, 2026, 10:22 (EST)
- RBC raised its Nvidia price target to $250 from $240; Truist lifted its target to $283 from $275.
- Nvidia forecast first-quarter revenue of about $78 billion and said it is not assuming China data-center compute revenue in that outlook.
- HSBC analyst Frank Lee kept a Buy rating but trimmed his target to $310, pointing to valuation and the rise of custom AI chips.
RBC Capital and Truist Financial raised their price targets on Nvidia on Thursday after the AI chip leader posted another record quarter and laid out a revenue outlook that topped many forecasts.
The revisions matter because Nvidia has become the market’s clearest read on data-center demand, where big cloud operators spend heavily on graphics processing units, or GPUs, to train and run AI models. That spending is under closer watch as investors debate whether custom chips can do more of the work at lower cost.
Nvidia’s stock was down about 3% in early trading, and RBC said the muted reaction suggested the market is starting to fret about whether revenue momentum is peaking even as guidance remains strong. Investing
Late on Wednesday, Nvidia forecast first-quarter revenue of $78.0 billion, plus or minus 2%, and said it was not assuming any Data Center compute revenue from China in that outlook. “Computing demand is growing exponentially — the agentic AI inflection point has arrived,” CEO Jensen Huang said, referring to AI systems designed to plan and act on tasks with less human prompting. Globenewswire
RBC lifted its target to $250 and kept an Outperform rating, citing results and an outlook that beat both its own estimates and broader expectations. The bank said visibility now runs deeper into 2027, with the next-generation “Rubin” platform still tracking, and margins holding up despite higher memory prices.
Other brokers have also nudged targets higher. Investing.com said Rosenblatt and Bernstein moved their targets to $300, while Wolfe Research reiterated an Outperform rating with a $275 target and pointed to Nvidia’s roughly 75% gross margin outlook and the lack of assumed China data-center revenue in the guidance.
Truist raised its target price to $283 from $275 and maintained a buy rating, MarketBeat reported, implying about 45% upside from where the stock was trading at the time. MarketBeat data put Wall Street’s average target at $271.32 and showed most analysts rating the shares a buy. Marketbeat
HSBC analyst Frank Lee struck a slightly different tone. He kept a Buy rating but cut his price target to $310 from $320 after lowering the price-to-earnings, or P/E, multiple he uses in his valuation, TipRanks reported. “We believe that the demand for GPUs remains intact and expect GPUs to account for the bulk of hyperscalers’ capex,” Lee said, using the term hyperscalers for the biggest cloud data-center operators and capex for capital spending. Tipranks
Lee also pushed back on the idea that ASICs — custom chips built for specific tasks — are already displacing Nvidia’s GPUs, citing Google’s use of its TPU chip to train its Gemini 3 model. He flagged Nvidia’s push into server CPUs as a possible new driver, pointing to what he described as an agreement with Meta for a large rollout of Nvidia’s Grace CPUs, with “Vera” chips expected to follow.
But the new targets sit on top of high expectations. RBC’s base case assumes hyperscaler spending slows gradually, and both RBC and HSBC pointed to ongoing uncertainty around China exports; tighter rules or a sharper spending pullback could change the near-term growth story. MarketBeat also cited valuation, insider selling and competition as near-term risks, including the chance that more AI work shifts to in-house silicon rather than Nvidia’s processors.
