Stifel expects Nvidia's financial report to exceed expectations and raises guidance, maintaining a buy rating and a target price of $282

Stifel analyst Ruben Roy maintains a buy rating and a target price of $282 before Nvidia (NVDA) releases its second quarter fiscal year 2027 results, and expects Nvidia's performance this quarter to exceed expectations, while raising subsequent guidance. Stifel stated that cloud service providers have significantly increased their capital expenditures, with Hon Hai's cloud network product business accounting for over 50% of revenue for the first time. It is expected that AI rack shipments will more than double for the full year, and Supermicro will add over $60 billion in new orders in a single quarter. Supply chain research shows that GB300 demand is expected to last until the first half of 2027, reducing the risk of demand gaps during Nvidia's product generational transition. Stifel believes that the impact of storage costs and competition in the AI inference field is reflected in gross profit margins, and related risks have been partially reflected in current valuations.