New Nvidia, Marvell Price Targets After ‘Incredible’ Model-Layer Growth

We’ve already discussed why we remain bullish on Nvidia (NVDA), sharing our thoughts with the good folks at Bloomberg.

But let’s go one step further and raise our NVDA price target to $280 from $250, which is the lower end of where Wall Street is taking its NVDA price targets following Wednesday night’s quarterly results and guidance. So far, Wall Street price targets are being reset to $270 to $330, with perma-bull Wedbush clocking in at $330, from $240 to $300.

We’ll get into the reasons for price target increase in a few moments, but first, our shares of Marvell (MRVL) are up and faring better than NVDA shares on Thursday. That stems from word that Anthropic is in talks to use Microsoft’s (MSFT) AI chips. This builds on the positive commentary in recent weeks for AI chips with Marvell’s other key custom silicon customer, Amazon (AMZN). We’d also remind you that Portfolio resident Broadcom (AVGO) is also working with Microsoft on its AI chip endeavors.

Ahead of Marvell’s quarterly earnings report next week on May 27, we’ll boost our price target to $210 from $175 but issue the same note of caution heading into that report that we made for Nvidia’s quarterly results. That is one of very high expectations following the 150% move since early March compared to a move near 10% for the S&P 500. At the end of April, about 28.2 million MRVL shares were short per data from Nasdaq. We should get a mid-May update for that position in the next few days, but we’d be surprised if it was meaningfully lower.

Subject to Marvell’s guidance and the market reaction, should a negative overreaction ensue, we’ll keep an open mind and our eyes on key support levels.

And as long as we’re marking our calendar, Broadcom reports on June 3.

Now, let’s chat more about Nvidia

Nvidia

Once again, Nvidia delivered a beat-and-raise quarter this time for its April 2026 quarterly results and July quarter guidance. By the numbers, revenue came in at $81.6 billion, up 85% year over year and well ahead of the market consensus near $79 billion. The newly recast segment results showed Data Center (92% of total revenue) up 92% compared to the year-ago quarter and more than 20% sequentially. The smaller Edge Computing segment, which includes the company’s gaming, automotive and embedded businesses, posted $6.4 billion in revenue, up 29% year over year.

While we’re not going to dismiss the Edge Computing segment, the reality is the Data Center business is the tail that wags Nvidia’s business and its shares. On an almost weekly basis so far this year, we’ve seen headlines about AI and data center capital spending or strategic tie-ups, underscoring rising capital spending levels not only from the hyperscalers but also from AI cloud-based firms like CoreWeave (CRWV) and other neo clouds. We’ve also shared multiple signals with you about rising AI adoption and expanding usage across the enterprise, with consumers and other institutions.

Against that backdrop and measured against the monthly sales results from Taiwan Semiconductor (TSM) and Foxconn, among others, we’re not surprised by the strong demand for Nvidia’s chips and we see that continuing. While we see rising demand over the next few years, we will continue to watch for potential signs of stagnating AI usage levels.

On the topic of AI adoption and usage, Nvidia’s Jensen Huang offered this on last night’s earnings call:

“… the adoption of products and services native to AI is inflecting. Since the advent of ChatGPT, we have witnessed mainstream AI transition from one-shot inference to reasoning and to now agentic. AI is no longer a nice to have. AI is now a necessity for enhancing productivity across all industries and roles. This is propelling revenue acceleration across all layers of the AI cake, including energy, chips, infrastructure, models and applications. Growth in the model layer, particularly at Anthropic and OpenAI has been incredible…“

On Thursday, we learned Anthropic’s revenue for the current quarter is expected to be around $10.9 billion, more than double the $4.8 billion booked for Q1 2026. OpenAI has surpassed the annualized revenue run rate of $25 billion and is expected to deliver $34 billion in revenue this year if not more.

Back to Nvidia…

For the $75.2 billion Nvidia booked in Data Center revenue, Data Center computing accounted for $60 billion and was up 77% year over year. The balance of about $15 billion was attributed by the Data Center networking business, which per management’s earning call comment, nearly tripled year over year. If you’re thinking that confirms our view that rising AI adoption and usage would demand for networking equipment, you’d be spot on. It also keeps us bullish on MRVL and AVGO shares, and the ones for Arista Networks (ANET).

Slicing Data Center another way, hyperscale revenue of $38 billion was approximately 50% of Data Center revenue and increased 12% quarter-over-quarter. ACIE revenue, which stands for “AI Clouds, Industrial and Enterprise,” was $37 billion in the quarter, up a quicker 31% compared to the prior quarter. As we think about those two slices, while the hyperscalers have their own custom AI chip initiatives, those in the ACIE arena do not. That helps explain the faster revenue growth tied to that group.

On the topic of CPU demand, which has helped push Intel (INTC) shares higher, Nvidia’s Vera chip, which builds on its Grace CPU, should open a new $200 billion addressable market for Nvidia. During the earnings call, management mentioned it has nearly $20 billion in total CPU revenue lined up for this year. It also mentioned that Vera Rubin will launch in 2H 2026. That along with demand for its other chips points to revenue continuing to climb quarter over quarter and compared to 2025 levels.

In our opening comments we touched on Nvidia upsizing its buyback program by $80 billion, which brings the total program up to $118.5 billion. During the April quarter, Nvidia repurchased 108 million shares for $20.2 billion. We also mentioned the dividend increase to $0.25 per share per quarter starting with the June 26 payment for shareholders of record as of June 4.

Nvidia will participate at the TD Cowen TMT Conference on May 28 and the Bank of America Global Technology Conference on June 4, and in between, Jensen will be giving a keynote at GTC Taipei at COMPUTEX on June 1. Those will give us some additional data points to ponder as will upcoming quarterly results from Dell (DELL) on May 28.

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At the time of publication, TheStreet Pro was long ANET, AVGO, MRVL, AMZN, MSFT and NVDA shares.