Nvidia's AI Chip Dominance Continues as Stifel Boosts Price Target

In the lead-up to Nvidia's (NVDA) earnings report on August 27, 2025, financial firm Stifel has expressed confidence in the company's prospects. Stifel has raised its price target for Nvidia's stock from $202 to $212, citing strong demand for the company's upcoming GB300 chips and a rebound in H20 shipments that began in July.

Stifel's analysts are expecting Nvidia to deliver another earnings beat and raise when the company reports its results. They have observed signs that orders for the GB300 chips are already heating up, while demand for the existing GB200 chips has not cooled off either. This suggests Nvidia is maintaining its dominance in the AI hardware market.

However, investors are closely watching a few key factors that could impact Nvidia's performance. These include whether the cloud giants will continue to spend heavily on AI infrastructure, and whether the industry is approaching the edge of an AI bubble. Additionally, the effects of China's export restrictions on Nvidia's business remain a concern.

Another potential challenge is the impact on profit margins as Nvidia begins shipping the new GB300 chips, as early ramps tend to be expensive. But despite these potential headwinds, Stifel remains bullish on Nvidia, believing the company is still well ahead of the competition in AI hardware and that the GB300's expected 50% performance improvement on key metrics will keep Nvidia in a strong position as AI models become more complex.

Overall, Stifel believes Nvidia still has room to run, and that the stock remains reasonably priced, especially if the company continues to dominate the AI hardware market.