Wedbush lifts Nvidia price target to $345 after first full-year guidance

Wedbush Securities has raised its price target on Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) to $345 from $330 and kept an outperform rating, after the US chipmaker beat forecasts and issued its first full-year outlook.

Second-quarter revenue of $96.2 billion, up 106% year on year, and adjusted earnings of $2.22 a share both topped consensus estimates of $92.2 billion and $2.10.

The beat of $5.2 billion against the guided mid-point was larger than in each of the previous three quarters, the broker noted.

Data centre sales, its largest business, reached a record $89 billion, up 117% year on year, and made up 93% of the total.

Nvidia guided to third-quarter revenue of $108 billion, plus or minus 2%, around $4 billion ahead of Wall Street's consensus forecast.

For the first time, management forecast revenue growth of around 70% in the financial year to January 2028, a year still five months away.

Nvidia said cloud industry backlog now tops $2 trillion, with capital spending at the five biggest hyperscalers on course to near $800 billion this year.

Management said that outlook was constrained by supply, with customer forecasts pointing to demand roughly doubling.

Chief executive Jensen Huang framed unconstrained demand as capable of supporting close to 100% growth, against the 70% Nvidia can actually supply.

The company expects supply to remain a bottleneck at least until the end of the January 2028 financial year.

Nvidia warned that gross margins would slip to 74% this quarter, trough at 71% to 72%, then settle at 72% to 73% next year.

Management described pricing conditions in memory chips as extreme, adding that increases had exceeded its own expectations and woul...