Nvidia stock (NASDAQ: NVDA) continue to trade in red on Thursday even as the Wall Street analysts raised their price target ahead of the Q2 earnings.
UBS just bumped up its price target for Nvidia, raising it from $175 to $205. That’s almost a 17% jump from where the stock closed, showing the bank is feeling pretty confident about Nvidia’s prospects.
The analysts kept their “buy” rating on the Nvidia stock and is predicting Nvidia could beat revenue estimates by roughly $1 billion this quarter.
The big reason? Soaring demand for data center gear and Nvidia’s strong spot in the AI chip market, which seems to be paying off in a big way.
The experts pointed to the booming demand for data centers, noting that Texas alone has seen about 40 gigawatts of new load requests.
Some of those orders might be duplicates, as companies try to lock in spots in the queue, but overall, the outlook looks strong.
Rack partners for Nvidia’s GB200 and GB300 chips expect around 30,000 racks to ship by the end of the year, with even bigger growth likely in Q4.
The analysts also highlighted Nvidia’s recent licensing deal with the US government, which allows the company to sell H20 chips to China under strict rules.
The arrangement includes a 15% revenue share from Chinese sales going to the government, something UBS views as a positive for Nvidia’s access to international markets.
Bullish sentiment around Nvidia stock
Nvidia’s momentum really stands out compared with the rest of the industry.
The US government’s role in export licenses and revenue-sharing deals with chipmakers like Nvidia and AMD shows just how much regulation is shaping the semiconductor world these days.
On top of that, the company’s own moves, like its product roadmap and how it manages inventory, will be key to keeping growth on track.
Nvidia has taken the lead in AI chips and is expanding fast in data center infrastructure, right as AI applications keep multiplying across industries worldwide.
If export rules to China ease, it could open up fresh revenue streams, which is probably why investors are feeling bullish.
UBS’s raised price target and optimistic forecast capture that sentiment, coming just ahead of Nvidia’s earnings report next Wednesday after the market closes.
What analysts say?
Wall Street seems to be on the same page as UBS when it comes to Nvidia.
Out of 65 analysts covering the stock, 58 are calling it a buy or strong buy. The shares have already jumped more than 30% in 2025, showing investors are betting big on the company’s growth.
The analysts point out that Nvidia still has some H20 inventory that was written down, which could now be put to use thanks to the new license.
On top of that, the company is reportedly ordering fresh Hopper wafers and working on a new Blackwell chip aimed at Chinese customers.
All of this seems tied to the hope that US export rules might ease, especially as rare earth trade talks with China continue, a move that could open up even more revenue for Nvidia.
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