Advancements In AI Will Drive Future Data Center Demand

NVIDIA’s price target was raised to $209.19 as analysts cite robust AI compute demand, accelerating new product shipments, and multi-billion-dollar China revenue tailwinds, with bullish views tempered by competition and high expectations.

Analyst Commentary

• Bullish analysts are raising targets based on ongoing, robust demand continuing to outstrip supply for Nvidia’s AI compute, with key product ramps (especially Blackwell and GB300/B300) driving sharply higher sales and visibility into multi-year growth, even as capacity scales and new product cycles launch.
• Price targets are being lifted in response to strong or “beat and raise” quarterly results, rapid acceleration in GB200/GB300 shipments, and guidance pointing to outsized growth in Data Center, offset only by minor short-term misses or perceived “imperfections.”
• The re-opening of the China market, with resumed H20 and GPU shipments following license approvals, is cited as a potential multi-billion ($2B-$5B) near-term incremental revenue opportunity, lifting revenue and earnings estimates despite ongoing regulatory uncertainty.
• Bearish analysts or those lowering targets are noting rising competition from the likes of Broadcom and Alphabet (TPUs), expecting modest headwinds from XPU deals or narrowing tech leadership gaps and highlighting very high investor expectations that may cap near-term stock appreciation.
• The secular growth thesis is grounded in a multi-trillion-dollar AI infrastructure total addressable market by 2030 and Nvidia’s position as the “best and cleanest way” to play AI compute, with high conviction in sustained earnings power ($8+ EPS seen by 2026) and institutions still underweight the stock relative to S&P 500 benchmarks.

What's in the News

• Nvidia's new RTX6000D AI chip for China has seen lukewarm demand, with local firms opting to wait for potential H20 or B30A models amid concerns over cost and effectiveness (Reuters).
• Nvidia is scaling back its DGX Cloud business, reducing competition with AWS and shifting focus to supporting internal R&D efforts (The Information).
• Pressure on Nvidia in China is intensifying as firms like Alibaba and Baidu replace Nvidia chips with internally developed alternatives, driven by U.S. export controls that limit the capabilities of Nvidia’s Chinese offerings (The Information).
• Ongoing U.S.-China trade tensions are prompting regulatory scrutiny: Nvidia stopped H20 production after Chinese officials discouraged use, and China launched anti-discrimination and dumping probes on U.S. chipmakers including Nvidia (Reuters, The Information).
• Nvidia is active in global AI infrastructure expansion, forming partnerships for datacenter investments in the UK with CoreWeave and OpenAI, despite volatility in related stocks and short-seller skepticism about CoreWeave’s business model (Bloomberg, Kerrisdale Capital).

Valuation Changes

Summary of Valuation Changes for NVIDIA

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $207.01 to $209.19.
• The Future P/E for NVIDIA remained effectively unchanged, moving only marginally from 34.60x to 35.18x.
• The Discount Rate for NVIDIA remained effectively unchanged, moving only marginally from 9.97% to 9.95%.