Loop Capital kept its Buy rating on Nvidia (NVDA) after saying that the company’s stock should stay strong as it gets ready to ramp up production of its new Blackwell chips this fall. As a result, the firm kept its price target at $175 ahead of Nvidia’s Fiscal Q1 2026 earnings report, which is expected on May 28. Analysts, led by five-star rated Ananda Baruah, believe that the upcoming results and July quarter guidance should be solid enough to keep investors confident, especially since they expect the second half of calendar year 2025 to be much stronger than what Wall Street currently predicts.
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Even if the July guidance is weaker than some investors want, the analysts think that the market will be willing to overlook it. They believe Wall Street is underestimating Nvidia’s full-year performance for both 2025 and 2026, as their research suggests that GPU demand could hit over eight million units in 2026, up from more than six million this year. These estimates don’t even include a possible order of over one million GPUs from Middle Eastern buyers or Elon Musk’s recent announcement that his xAI data center in Memphis will add another one million GPUs within six to nine months.
The analysts also said that demand stayed strong in the April quarter, despite challenges like new product launches, tariffs, macroeconomic uncertainty, and tensions with China. Interestingly, it is worth noting that Nvidia counts revenue when it sells chips to partners, not when those chips reach end users, which gives the company a chance to benefit from high demand early. They also noted that if guidance were to be softer than expected, then investors should keep in mind that AI-focused cloud companies are taking longer than usual to make purchase decisions because many Blackwell-based systems are becoming available all at once, which adds complexity to the buying process.
Is NVDA a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 34 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $164.51 per share implies 20% upside potential.
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