Truist Securities has reaffirmed a Buy rating on Nvidia (NASDAQ:NVDA) and maintained a $275.00 price target as the company prepares to report fiscal fourth-quarter results on Wednesday. The firm noted Nvidia's market capitalization at $4.65 trillion and observed that the stock is trading below its InvestingPro Fair Value, implying room for potential upside.
According to the FactSet consensus cited by Truist, Nvidia is expected to report fiscal fourth-quarter revenue of $66.07 billion, which would represent 67% growth year-over-year, and earnings per share of $1.53. The company has posted notable momentum over the past year, delivering 65% revenue growth over the last twelve months and trading at a PEG ratio of 0.79. For the fiscal first quarter ending in April, consensus estimates call for $72.7 billion in revenue - up 60% year-over-year - and $1.69 in EPS.
Truist highlighted that buy-side expectations have tended to include modest upside relative to both results and guidance in recent quarters. Over the last eight quarters, the firm found that beats averaged about $1.3 billion against reported results and less than $1 billion against management guidance. Truist said that similar upside appears realistic for the upcoming report.
Industry contacts interviewed by Truist pointed to persistent strength in AI infrastructure demand. Companies within the firm’s coverage reported improving conditions in the data center and AI end markets through fourth-quarter 2025 earnings announcements, with several noting a significant expansion in book-to-bill ratios.
Cloud service providers have continued to lift spending plans for AI infrastructure, with consensus expectations for their AI-related capital allocation increasing over the last quarter, Truist said. The firm added that this upward revision trend has been in place throughout the last year.
For investors seeking more detailed analysis of Nvidia’s valuation and growth outlook, Truist referenced an in-depth Pro Research Report available on InvestingPro.
Broader analyst positioning ahead of the print
Other analyst teams have also published views in advance of Nvidia's earnings.
- Cantor Fitzgerald reiterated an Overweight rating and set a $400 price target, projecting that Nvidia could surpass current earnings estimates for fiscal years 2026 and 2027.
- Morgan Stanley maintained an Overweight rating with a $250 price target and expressed strong confidence in Nvidia's full-year outlook.
- KeyBanc is modeling fiscal fourth-quarter revenue of $69 billion and expects first-quarter revenue guidance in the range of $74 billion to $75 billion.
- DA Davidson reiterated a Buy rating with a $250 price target, noting expectations for robust growth exceeding 50%.
- Aletheia Capital upgraded Nvidia to Buy from Hold, citing anticipated normalization of inventory concerns and improvements in rack shipments by the fourth quarter of fiscal 2026.
Collectively, these analyst notes reflect a generally optimistic stance toward Nvidia’s near-term performance and longer-term market positioning, particularly driven by demand in AI and data center segments.
Implications for markets and sectors
The commentary from Truist and other firms centers on demand trends in AI infrastructure, as well as the spending patterns of cloud service providers. These dynamics directly affect semiconductor capital equipment, data center operators, and cloud infrastructure investment cycles.
Disclaimer: This article reports on analyst ratings and consensus expectations as stated by the firms cited. The piece does not provide investment advice.