Why Nvidia Shares Soared (Again) on Tuesday

shares Nvidia (NVDA 4.89%) It rose (again) on Tuesday, rising as high as 4.9%. As of 3:32 PM ET, the stock was still up 4.6%.

The catalyst that sends the chip manufacturer and artificial intelligence (AI) The pundits’ rise was a pair of price target increases from Wall Street analysts ahead of the company’s next quarterly report.

bulls are running

Truist Securities analyst William Stein maintained a buy rating on Nvidia shares while increasing his price target to $167. For investors holding score at home, this represents a potential gain of 19% compared to Monday’s closing price.

The analyst believes Nvidia is a buy ahead of earnings, as he still sees potential upside compared to Wall Street’s current expectations. It cites growing demand in the data center market, which is the repository for the vast majority of AI systems and models.

Not to be outdone, Stifel analyst Ruben Roy maintained a buy rating on Nvidia shares while increasing his price target to $180. This represents a potential upside of 28% compared to Monday’s closing price.

The analyst believes Nvidia will “beat and soar” by beating Wall Street’s consensus estimates for the quarter, while also raising its guidance for the full year. He pointed out that expectations have increased ahead of Nvidia’s 2025 third quarter financial results, which will be announced after the market close on Wednesday. He notes that supply chain controls support strong demand for Nvidia’s upcoming Blackwell architecture.

There’s so much to prove

Nvidia bucked expectations when the company released its latest quarterly report, but results are still expected to be solid. The company targeted revenue of $32.5 billion in the third quarter of fiscal 2025 (ended September 29); this represents a growth of 79% with a corresponding increase in profitability.

Investors will also be watching for Nvidia’s gross margin, which was slightly lower in the second quarter after setting a new record in the first quarter. Another area of ​​interest will be progress on the company’s Blackwell AI-centric processor release, which is expected to launch later this year.

Nvidia shares are currently selling for 33 times next year’s earnings, but I think that’s a small price to pay for a company considered the gold standard in AI processing.