UBS raised Nvidia’s price target citing stronger earnings power and data center growth ahead of expected Q1 revenue of $81 billion.
UBS increased its price target for Nvidia to $275 from $245, reflecting confidence in the company’s AI-driven demand and data center expansion. The revision is based on a 19x multiple applied to revised 2027 earnings per share of $14.35.
The firm expects Nvidia to report Q1 revenue of around $81 billion, surpassing consensus estimates of $78 billion. Second-quarter guidance is projected to range between $90 billion and $91 billion, aligning with or exceeding investor expectations. Production of the next-generation Rubin chip remains on track, though minor cooling adjustments may delay rack-level mass production until September or October.
UBS anticipates capital returns will be a focus in upcoming results, with potential share repurchases and a dividend increase. A new buyback authorization could reach $150 billion over the next 12 months.