Piper Sandler sees upside for Nvidia ahead of second-quarter earnings
Piper Sandler has increased its price target for Nvidia shares to $225 from $180, suggesting roughly 23% upside from current levels.
The investment firm reiterated its overweight rating on the stock, citing expectations for strong second-quarter results and continued demand momentum.
Analyst Harsh Kumar noted that the firm’s estimates are largely in line with consensus for the July quarter and slightly below for October.
However, he anticipates potential upside to both quarters’ numbers, supported by positive commentary from US hyperscale data center operators and contributions from China revenue.
Nvidia is scheduled to report its quarterly results on August 27, with analysts surveyed by FactSet projecting earnings of $1 per share on $45.76 billion in revenue.
Nvidia’s shares were down 0.2% in premarket trading. The stock has gained 36% in the year so far.
Strong demand continues to outstrip supply
According to Kumar, Nvidia remains in a “demand greater than supply” environment — a situation he expects will persist through the end of 2025.
Even without sales to China, US high-performance computing (HPC) demand is surpassing the company’s capacity to deliver its latest architecture.
This supply constraint is compounded by model changes at Nvidia, including the transition to rack-based systems, and delays in rolling out the GB200 product.
The analyst highlighted that these factors are limiting Nvidia’s ability to meet customer needs despite a robust order pipeline.
“We continue to think that NVDA is in a demand greater than supply situation,” Kumar said, underscoring that the supply imbalance is not a short-term issue.
Market performance and analyst sentiment
Nvidia shares have risen more than 26% so far in 2025, reflecting ongoing optimism around the company’s position in the AI and HPC markets.
Market sentiment remains overwhelmingly positive. Out of 65 analysts tracked by LSEG, 58 rate the stock as a buy or strong buy, indicating broad confidence in Nvidia’s growth prospects.
The anticipated inclusion of China-related revenues in the coming quarters could provide an additional boost, though Kumar’s outlook suggests that US demand alone would be sufficient to sustain momentum.
The firm’s higher price target aligns with expectations for another solid quarter and continued industry tailwinds.
Nvidia’s upcoming earnings report will be closely watched, not only for its headline numbers but also for guidance on future quarters and updates on its supply chain constraints.
With demand for its chips running ahead of production capacity, the company’s commentary on manufacturing ramp-ups and new product timelines will be key for investors.
Piper Sandler’s view reflects a belief that Nvidia’s growth story remains intact despite near-term operational bottlenecks.
The August 27 earnings release will provide the next major catalyst for the stock, with analysts and investors alike looking for confirmation of the strong demand trends and potential upside hinted at in recent industry commentary.