Nvidia price target raised to $230 from $215 at KeyBanc

KeyBanc raised the firm’s price target on Nvidia (NVDA) to $230 from $215 and keeps an Overweight rating on the shares. The firm notes the company reported solid Q2 results, which were slightly above consensus, and guided Q3 solidly higher. Most notably, KeyBanc would highlight Q2 Data Center revenues missed expectations as Compute was flat quarter-over-quarter, while Networking grew 46% quarter-over-quarter, likely reflecting lower GB rack yields in the first half of the year; Q2 results and Q3 guidance excludes China, which could contribute $2B-$5B in incremental revenues to Q3 if more licenses are granted; Q3 guidance is solidly above, as consensus includes $1B in China revs and reflects improving GB rack shipments as GB300/B300 is ramping. Despite slightly disappointing results, KeyBanc is raising its estimates slightly given higher guidance.