Major Bank Ratings | JPMorgan: Nvidia's Post-Earnings Stock Price Drop Reflects High Investor Expectations, Target Price Raised to $265

Glonghui, February 27｜JPMorgan released a research report stating that Nvidia's financial results for the fourth quarter ended at the end of January and its operating guidance for the first quarter ending at the end of April were both robust, comprehensively exceeding market expectations. The revenue guidance for the first quarter was about $5 billion higher than the general market forecast, while the recent gross margin guidance also remained firmly at a mid-to-high level of 74% to 75%. JPMorgan pointed out that the stock price performance reflects high investor expectations, which is believed to be related to the market's continued focus on Nvidia's data center business growth prospects for next year. It is expected that quarterly revenue in fiscal year 2027 will continue to show sequential growth, with strong demand driven by inference computing, and it is also believed that agent AI will become a new driver of demand. Management indicated that discussions and order signings with clients are progressing smoothly, and there are no concerns about next year's growth prospects. JPMorgan remains optimistic about Nvidia's robust revenue growth in fiscal year 2027, raising the target price from $250 to $265 and maintaining an "overweight" rating.