Melius Research raised the firm’s price target on Nvidia (NVDA) to $205 from $150 and keeps a Buy rating on the shares. The firm says the company’s “momentum is back” following last night’s earnings report. Nvidia’s guidance excluding China seems to be $2B-$3B above expectations for demand everywhere else for Q2, implying better real demand at major clouds and in gaming for new Blackwell based products, the analyst tells investors in a research note. Melius thnks the company’s gross margins are likely to go back into the mid-70%’s quickly in the second half of fiscal 2026, helping its long-term earnings power.
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