Melius Research Lifts Nvidia (NVDA) Price Target After Q1 Report

Melius Research analyst Ben Reitzes reiterated a bullish stance on NVIDIA Corporation (NASDAQ:NVDA), giving it a Buy rating on May 29. He also raised the stock’s price target to $205 from $195 following its solid fiscal Q1 2026 results reported on May 28.

The company grew its revenue by 69% compared to last year, reaching $44.1 billion. The analyst thus based his rating update on NVIDIA Corporation’s (NASDAQ:NVDA) strong financials that suggest solid future performance.

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One of the key reasons behind his optimism is NVIDIA Corporation’s (NASDAQ:NVDA) impressive sales growth. This holds especially true outside of China and is anticipated to surpass market expectations by $2-3 billion in the upcoming quarter. The analyst supported this growth with rising demand from the gaming sector and key cloud providers for the company’s new Blackwell-based products.

The analyst reasoned that NVIDIA Corporation’s (NASDAQ:NVDA) gross margins are expected to rebound to the mid-70% range, thereby boosting long-term earnings potential.

Reitzes also noted that the company’s guidance for non-China-related demand suggests promising acceleration despite challenges in the Chinese market, with a 14% quarter-over-quarter growth expected. Coupled with the possibility of recovery in Chinese revenue and the ongoing demand from sovereign and hyperscaler sectors, the analyst believes that this growth supports a higher target price.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.