KeyBanc thinks its ambitious price target on Nvidia is warranted ahead of quarterly results on Wednesday. The firm reiterated a buy rating on Nvidia stock in an earnings preview note Sunday for semiconductor stocks. KeyBanc’s new $375 per share price target, up from $320, equates to roughly 20% upside for the stock, which has already soared 114% this year. Chipmakers also reporting this week includes Marvell Technology and Analog Devices . “We see NVDA as being best positioned to deliver beat/raise results driven by increasing tailwinds from generative AI supported by the rollout of additional RTX40 gaming SKUs,” analyst John Vinh wrote. NVDA YTD mountain Nvidia stock. Vinh also highlighted Nvidia’s market dominance in the semiconductor space, thanks to the prominence and interest in artificial intelligence this year, as the main contributor to the bull case. While supply constraints for graphic processing units could hinder near-term upside, Vinh says KeyBanc “anticipates investors will look through these concerns.” “[W]e believe NVDA’s outsized share position and ability to monetize growth in generative AI at 70%+ GM should warrant a meaningful premium vs. its semiconductor peers,” Vinh said. KeyBanc forecasts Nvidia will report $6.56 billion in revenue and an adjusted 93 cents per share on Wednesday. Analysts polled by FactSet estimate 92 cents per share. — CNBC’s Michael Bloom contributed to this report.
