CICC Raises Nvidia's Price Target to $260, Increases Revenue and Profit Forecasts for the Current and Next Fiscal Year.

CICC International released a report stating that Nvidia's fourth-quarter revenue for the fiscal year ending in January 2026 was $68.1 billion, exceeding the median guidance of $65 billion and market expectations. The non-GAAP gross profit margin was 75.2%, higher than the median guidance of 75%. The bank believes that the revenue from internet chips reached $11 billion, a more than 3.5-fold annual increase, making it the biggest highlight. Management has guided the first-quarter revenue for the fiscal year ending in April 2027 to be $78 billion, with a non-GAAP gross profit margin of 75%. Considering the active expansion of production by suppliers such as TSMC and memory suppliers, as well as Nvidia's leading position in the industry, the bank believes that the impact of supply chain tightness on Nvidia is smaller compared to the industry peers. The bank raised Nvidia's revenue for the fiscal years 2027 and 2028 to $354.5 billion and $455.7 billion, respectively, raised non-GAAP earnings per share forecast to $8.06 and $10.52, and raised the target price to $260, corresponding to a price-earnings ratio of 28 times the forecasted earnings for 2027 and 2028, believing that the stock price is attractive.