CICC: NVIDIA's third-quarter performance exceeds expectations again, raising target price to $228.

According to the Zhongjin Research Report, Nvidia's revenue in the third quarter of the 2026 fiscal year was $57 billion, a year-on-year increase of 62%, with a non-GAAP gross margin of 73.6%, a year-on-year decrease of 1.4 percentage points; net profit attributable to shareholders was $31.8 billion, a year-on-year increase of 59%, performance exceeded market expectations and met the bank's expectations. Zhongjin believes the reason is strong demand for Blackwell products and smooth shipments of the GB300 series products. Due to the continuous leading position in the market competition, Zhongjin raised Nvidia's revenue for the 2026 fiscal year by 3% to $213.6 billion, basically maintaining the forecast for non-GAAP net profit in the 2026 fiscal year. The revenue and non-GAAP net profit for 2027 are raised by 16% and 13% to $341.5 billion and $191.1 billion, respectively. The current stock price is trading at a P/E ratio of 23.9 times for the 2027 fiscal year, maintaining an "outperforming industry" rating, raising the target price by 14% to $228, corresponding to a P/E ratio of 29.2 times for 2027, with an upside potential of 22%.