Melius raises Nvidia price target to $420 on strong AI demand

Melius Research raised its price target on Nvidia to $420 from $400, maintaining a Buy rating, citing the company's strong revenue outlook and guidance for over 70% annual growth. Nvidia reported fiscal second-quarter revenue of $96.2 billion, more than doubling year-over-year and beating estimates, with adjusted earnings per share of $2.22. Purchase commitments surged to $279 billion, up 134% from the prior quarter, reflecting robust AI demand. The firm projects Nvidia could achieve earnings per share above $20 within two years and capture over 50% of a $2 trillion market before 2030. Other analysts also raised targets, citing strong data center growth and Blackwell Ultra demand.