Nvidia pushes all-time high as Wells Fargo hikes price target to $220

Wells Fargo raises Nvidia price target to $220.
Analyst Stacy Rasgon hikes fiscal Q2 revenue estimate to $48.2 billion.
NVDA shares have risen 11 weeks in a row.
US government demands 15% of H20 chip revenue for sales to China.

Clay Webster FXStreet

On Monday, Nvidia (NVDA) stock is bumping up against its all-time high of $183.88, set just two sessions ago last Thursday, August 7. Wells Fargo ushered in more bullish sentiment on Monday for the star AI chip stock as it raised its price target ahead of earnings at the end of the month.

The broad market is once again mixed as the Dow Jones Industrial Average (DJIA) falls 0.4%, while the NASDAQ clings to 0.2% gains midway through Monday's session. The S&P 500 is about even. US Treasury yields are lower across the curve on Monday as traders plough funds into them in light of expected interest rate cuts next month.

Plenty of news is also clogging the terminals. Intel (INTC) CEO Lip-Bu Tan is scheduled to meet with President Donald Trump on Monday, following the President's tirade on social media last week in which he called for Tan's removal due to what he alleged were close ties to China. President Trump is also planning to meet with Russian President Vladimir Putin in Alaska on Friday to talk about a ceasefire in Ukraine.

Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data both get released this week on Tuesday and Thursday, respectively. Further inflation expectations data arrive on Friday, alongside Retail Sales data for July.

Nvidia stock news

Wells Fargo analyst Aaron Rakers raised his price target on NVDA shares from $185 to $220 on Monday, maintaining his Overweight rating.

Rakers had originally expected Nvidia to release second fiscal quarter results on August 27 of $1.00 in adjusted EPS on revenue of $45 billion. But after carrying out channel checks and conversations with various buyers, Rakers raised his projection to $1.06 on revenue of $48.2 billion.

Wall Street consensus on revenue for fiscal Q2 remains at $45.7 billion.

Most of the large increase in revenue stems from higher data center segment sales and the restart of H20 sales to China. The Trump administration halted shipments of the H20 chip to China earlier this year but has now given the go-ahead to restart shipments of the reduced-spec chip meant to keep Chinese industry at a disadvantage in the AI race.

Analyst Stacy Rasgon at Bernstein is less enthused about the Trump administration's plan to trade Chinese export licenses to Nvidia and competitor Advanced Micro Devices (AMD) in exchange for 15% of all of their Chinese revenue.

"[E]ven with a haircut we suppose 85% is better than zero%, and we’ll take it. That being said, we aren’t sure we like the precedent this sets (will it stop with Chinese AI? Will it stop with controlled products? Will other companies be required to pay to sell into the region? It feels like a slippery slope to us...)," Rasgon wrote in his client note.

Bank of America released its latest global fund manager survey this week, showing that being long the Magnificent 7 stocks is the most-crowded trade at 45%. This is the highest level for that trade since peaking in March. The second most-crowded trade was shorting the US Dollar at 23% and being long Gold at 12% of survey respondents.

Nvidia stock forecast

Nvidia stock has risen for 11 straight weeks at this point, and Monday is demonstrating that bulls will try again this week.

While the Relative Strength Index (RSI) is overbought at 73, its highest reading since July 2024, bulls will look to the overhanging top trendline that provides a resistance level just above $200. Alongside the hiked Wells Fargo price target, many bulls expect to achieve the $200 psychological level in the lead-up to earnings on August 27. They have more than two weeks to get it done.

On the downside, prior resistance at $153 could become support, as well the 26-week and 52-week Simple Moving Averages (SMAs) providing support in the mid-$130s.

NVDA weekly stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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