Evercore ISI raises Nvidia stock price target to $352 on accelerating revenue

Nvidia jumped about 5% premarket after Evercore ISI raised its price target to $352 (from $261) and kept an Outperform, citing reaccelerating revenue and eased supply; the company reported a blowout October quarter with $57bn in revenue (vs. $55.2bn consensus) and guided January-quarter revenue to $65bn (vs. $61.8bn consensus). Evercore highlighted roughly 48% quarter-over-quarter growth in Blackwell compute revenue (with Blackwell Ultra contributing about two-thirds, ~$27bn), inventory up 32% QoQ and supply commitments +63% QoQ, and argued only ~$110bn of a large compute/networking pipeline has been recognized YTD leaving roughly $390bn to be recognized toward a potential $500bn data-center compute orders goal for 2025–26; the firm models revenue growth accelerating from 56% to 79% by July 2026. Multiple sell-side analysts also lifted targets (Mizuho, Baird, Bernstein; Stifel reiterated a Buy), InvestingPro shows 15 analysts raising earnings estimates, and valuation indicators (PEG ~0.81) alongside high volatility (beta ~2.27) suggest strong near-term growth expectations but ongoing market risk.

Analysis

Evercore ISI’s upgrade to a $352 price target (from $261) and an Outperform, which sent NVDA up ~5% premarket, follows a blowout October quarter: revenue $57.0bn versus $55.2bn consensus, +62% year-over-year and +22% sequential, and guidance of $65bn for the January quarter versus $61.8bn consensus. The company’s data-center strength is the principal driver, with Blackwell compute revenue up roughly 48% quarter-over-quarter and Blackwell Ultra comprising about two-thirds of Blackwell revenue (approximately $27bn).

Evercore highlights easing supply constraints—inventory +32% QoQ and supply commitments +63% QoQ—and models only $110bn of Blackwell/Rubin/networking revenue recognized year-to-date versus about $500bn potential data-center compute orders in 2025–26, implying roughly $390bn of recognition remains over the next five quarters. InvestingPro shows 15 analysts lifting earnings estimates and multiple brokers (Mizuho, Baird, Bernstein, Stifel) raising targets, supporting a consensus of reaccelerating revenue.

Valuation signals are mixed but constructive: PEG ~0.81 and a six-month price return of +38.8% support growth expectations, while a reported beta of 2.27 implies high volatility. The article cites conflicting P/E figures (53.13 and 25x), suggesting investors should clarify trailing vs. forward multiples; Evercore’s model projecting revenue growth from 56% to 79% by July 2026 underpins its premium multiple thesis but execution and pipeline recognition remain key risks.

Key Decisions for Investors

• Consider a staged increase to NVDA exposure to capture continued data-center demand given strong beats and raised guidance, but avoid all-in allocations due to elevated beta and market volatility
• Monitor the pace of recognition of the ~$390bn remaining compute/networking pipeline and quarterly supply metrics (inventory and supply commitments) as primary catalysts that validate Evercore’s thesis
• If holding sizable positions, consider risk-management measures such as downside protection or options hedges ahead of quarterly updates, since valuation interpretations differ and execution risk remains material