Partnerships With Toyota And Uber Will Expand AI Presence In Automotive Sector

Analysts have raised NVIDIA’s price target to $194.22, citing surging demand for Blackwell and H20 products, resumed shipments to China, under-ownership by institutions, and strong AI infrastructure tailwinds driving higher earnings forecasts.

Analyst Commentary

• Bullish analysts cite accelerating shipments and demand for Nvidia’s Blackwell (GB200/GB300) and Rubin products, underpinned by strong order momentum from hyperscalers, including resumption and ramping of H20 and GB series shipments, with positive guidance expected.
• Analysts flag resurgent revenue contributions from China, following regulatory license approvals to resume AI chip and H20 shipments, which are modeled as significant top-line tailwinds through upcoming quarters.
• Institutional ownership remains below Nvidia’s S&P 500 weighting, positioning the stock as “under-owned” in the megacap tech space and suggesting room for increased institutional allocation going forward.
• Nvidia’s valuation remains at a discount to key peers like Broadcom, despite analysts viewing it as the “cleanest way” to gain direct artificial intelligence exposure and projecting structurally higher Data Center revenues ($200-300B range in 2025-2026).
• Industry tailwinds, including hyperscale AI infrastructure spending, approval for export licenses, and a projected “golden wave” of Gen AI, underpin multi-year secular growth with analysts raising earnings and revenue estimates materially higher into 2026.

What's in the News

• Nvidia halted production of its H20 AI chip for China, instructing suppliers including Samsung, Amkor, and Foxconn to stop related work after Chinese regulators urged local firms not to use the chip over security concerns; CEO Jensen Huang is in talks with Beijing to address allegations of tracking and remote shutdown capabilities, which Nvidia denies (The Information, Reuters, NYT, FT).
• Biden/Trump administration policy volatility has led to Customs stalls and reversed export bans; Nvidia agreed to pay the U.S. 15% of revenue from Chinese chip sales to maintain export licenses, with tariffs and trade deal-related approval delays still impacting China sales (Bloomberg, FT, Reuters).
• Nvidia is developing a more advanced AI chip for China based on its Blackwell architecture while facing restrictions and growing domestic Chinese competition, including new offerings from Huawei and startup challenges from Rivos and Cerebras (Reuters, WSJ, The Information).
• Nvidia is actively expanding through strategic investments and partnerships, entering discussions to deploy humanoid robots with Foxconn, investing in Vast Data and being solicited for a stake in Quantinuum, while major hyperscalers (Microsoft, Oracle, xAI) continue large-scale procurement of Nvidia chips for AI data centers (Reuters, Bloomberg, WSJ).
• Nvidia’s market leadership faces several threats: $1B in stock has been sold by insiders amid current high valuation, enforcement challenges persist with $1B in AI chips reportedly smuggled into China, and industry incumbents (Amazon, Google, Microsoft) as well as startups are seeking alternatives to Nvidia for AI compute needs (FT, The Information, WSJ).

Valuation Changes

Summary of Valuation Changes for NVIDIA

• The Consensus Analyst Price Target has risen slightly from $187.08 to $194.22.
• The Consensus Revenue Growth forecasts for NVIDIA has risen slightly from 27.5% per annum to 28.5% per annum.
• The Future P/E for NVIDIA has risen slightly from 36.42x to 37.56x.