Nvidia Price Target Hits $225 Amid Hyperscaler Surge, Q2 Focus

- Piper Sandler highlights a 23% upside potential for Nvidia, citing strong U.S. hyperscaler demand and renewed China sales. - Investors watch for clarity on supply-chain issues, tariffs, and AI growth ahead of the August 27 earnings report. On August 14, 2025, Piper Sandler adjusted Nvidia’s price target to $225, pointing to a 23% potential upside ahead of the company's Q2 earnings report on August 27. The firm cited strong U.S. hyperscaler demand and the resumption of GPU sales to China as drivers for the updated forecast. However, Nvidia also faces challenges from supply-chain constraints and a new 15% U.S. tariff on China-bound products. Piper Sandler maintained its overweight rating on Nvidia, reflecting confidence in the company’s performance. On August 13, Mitrade reported that Nvidia is struggling to meet chip demand, a challenge expected to persist through the end of the year. In a separate report on the same day, TheStreet highlighted that launch delays for the next-generation GB200 systems further compound these supply limitations. Foxconn will begin small-scale shipments of these systems in late 2024, with a broader rollout planned for 2025, although investors remain concerned about the uncertain production timelines. Renewed sales of Nvidia’s H20 and MI308 GPUs to China give analysts a reason for optimism. However, the newly imposed U.S. tariff tempers these gains and could impact Q2 profit margins. In Q1, unsold H20 inventory pushed Nvidia’s gross margin down to 71.3%. Leadership expects this figure to recover to the mid-70s by year-end, and the Q2 earnings call will provide more clarity on how these dynamics are evolving. Analysts are also focusing on Nvidia’s AI software division, awaiting specific revenue data. Metrics from the AI Enterprise platform and NIM microservices, particularly those on the Amazon AWS Marketplace, could provide key insights into AI segment growth. In addition, analysts view Nvidia's networking revenue, which reached $4.9 billion in Q1, as a crucial indicator of GB200 adoption and overall AI infrastructure expansion. Wall Street analysts remain bullish on Nvidia. According to data from LSEG, 58 of the 65 analysts it tracks rate the stock as a “buy” or “strong buy.” Nvidia forecasts Q2 revenue of approximately $45 billion, a figure that accounts for a brief halt on China GPU sales from earlier this year. Meanwhile, consensus estimates project a non-GAAP EPS of $1.00 and revenue of $45.76 billion, showing strong growth from the $0.68 EPS and $30.04 billion revenue in Q2 2024. Echoing this optimism, Goldman Sachs recently raised its price target for Nvidia from $185 to $200 while maintaining a “buy” rating. As the August 27 earnings report approaches, investors are closely watching how the company navigates supply-chain bottlenecks, GB200 delays, and tariff implications to sustain its growth.