Argus reiterates Nvidia stock rating on strong AI demand growth

Argus has reaffirmed a Buy rating for Nvidia (NASDAQ:NVDA) and set a $270 price target following the company's impressive fiscal second-quarter results. Argus analyst Jim Kelleher highlighted the company's revenue and earnings growth, which exceeded market expectations. Nvidia's Data Center revenue soared to $89 billion in fiscal Q2 2027, marking a 117% increase from the previous year.

The growth was driven by strong demand for artificial intelligence networking and the continued need for graphics processing unit-based compute solutions. Nvidia anticipates generating $108 billion in revenue for fiscal Q3 2027, about $4 billion above the $103.9 billion consensus estimate. Analysts have revised their earnings estimates upward for the upcoming period, and the platform's Fair Value analysis suggests that the stock remains undervalued.

Nvidia expects growth beyond hyperscale data centers into AI cloud, enterprise, and its Edge Computing end markets, which include gaming, professional visualization, and automotive. Nvidia reported even stronger financial results for its Q2 2027, with revenue increasing by 106% year-over-year to $96.2 billion. Adjusted earnings per share reached $2.22, surpassing consensus estimates of $2.09.

The company also guided its third-quarter revenue to approximately $108 billion, slightly above consensus expectations. Financial analysts have been positively reacting to Nvidia's recent performance, with Stifel raising its price target to $315 and Rosenblatt increasing it to $390. Cantor Fitzgerald reiterated a "Overweight" rating with a $350 price target, praising Nvidia's strong demand and successive sales. Jefferies also reported positive updates across various segments, emphasizing Nvidia's strong performance.