July 14 - Nvidia (NVDA, Financial) received a fresh boost on Friday as DBS analyst Fang Boon Foo raised his price target to $180 from $160, maintaining a "Buy" rating.
Foo pointed to sustained global demand for Nvidia's AI accelerators, forecasting that revenue for Q2 FY 2026 will reach about $45 billion, up slightly from the prior quarter, as “Hopper” and “Blackwell” chip orders outpace supply.
While U.S. export curbs on China present risks, Foo noted that a China‑compliant variant under development may help mitigate potential headwinds, supporting continued growth in that market.
The analyst also highlighted Nvidia's annual product refresh cycle, transitioning from Hopper to Blackwell and then to Rubin, as a key advantage in the competitive AI chip landscape. He warned that gross margins might dip in the short term as Blackwell production ramps, but management expects margins to rebound to the mid‑70% range in fiscal year 2026.
Valuation concerns are tempered by Nvidia's strong free cash flow and high return on equity, with Foo arguing that a 22‑times forward price‑to‑book multiple is “justified” given the company's market position.
