Nvidia (NVDA) shares rallied after the AI chip giant delivered better-than-expected fiscal Q2 results and upbeat guidance, reinforcing Wall Street's confidence in continued AI infrastructure spending. Melius Research analyst Ben Reitzes reiterated his Buy rating while lifting his price target to a new Street-high of $420 from $400, implying 100.3% upside potential. He believes Nvidia is undervalued despite its 70%+ expected growth and expects the company to capture more than 50% of a $2 trillion-plus AI market before 2030.

Nvidia's revenue reached $96.2 billion, beating expectations of about $92.3 billion, while data-center revenue surged 117% year-over-year to $89 billion. The company also guided for roughly $108 billion in Q3 revenue, signaling that demand for its AI chips remains strong. The results have already prompted several analysts to raise their price targets as investors look beyond the current quarter toward Nvidia's longer-term AI opportunity.

Other Wall Street analysts also raised their price targets on NVDA. Goldman Sachs analyst James Schneider lifted his price target to $300 from $285, saying he expects Nvidia to continue growing through 2027 while maintaining its competitive edge.

Bernstein analyst Stacy Rasgon also lifted his price target from $315 to $400, noting that the upcoming Rubin chip launch could drive another major growth cycle for the company.

Why Reitzes Turned More Bullish on NVDA

Reitzes believes Nvidia's expected 70%+ revenue growth more than offsets concerns about lower gross margins caused by higher memory costs. He also expects the company's earnings power to strengthen, with EPS potentially reaching $20+ within two years and $21.11 in FY2029.

The analyst also pointed to Nvidia's strong demand, with purchase commitments rising 134% quarter-over-quarter to $279 billion, largely reflecting higher memory needs. He expects Nvidia to maintain more than 50% share of a $2 trillion-plus AI market before 2030. Overall, Reitzes believes Nvidia remains undervalued given its growth outlook, supporting his Buy rating and higher $420 price target.

Reitzes is a five-star analyst on TipRanks, ranking #1,048 out of 12,499 analysts tracked. He has a 61% success rate and an average return per rating of 21.40%.

Is Nvidia Still a Good Stock to Buy?

On TipRanks, NVDA has a Strong Buy consensus rating based on 29 unanimous Buy ratings. The average Nvidia price target of $314.04 implies 49.8% upside potential from current levels. Year-to-date, NVDA shares have gained 12.6%.