On Friday, Jefferies sustained its optimistic stance on NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a price target of $185.00. The firm believes NVIDIA is well-positioned for the coming years, with expectations that demand for its Hopper products will stay strong through the first half of 2025. The anticipation is that the subsequent Blackwell products will exceed supply well into the second half of 2025 and could extend into 2026.
The analysis from Jefferies comes after further consideration of NVIDIA's recent performance and ongoing discussions with investors. The firm is increasingly confident in NVIDIA's setup heading into 2025. This confidence is further underscored by the feedback received at SC24, an industry conference, where it was noted that demand for NVIDIA's products is expected to be robust, similar to levels seen in 2023.
At SC24, it was observed that only lead customers and original design manufacturers (ODMs) were able to get their hands on the products, as average selling prices (ASPs) increased without a corresponding drop in volumes. This has resulted in a situation where many are waiting for the opportunity to purchase NVIDIA's offerings. The firm's perspective indicates a market where demand outstrips supply, creating a favorable environment for NVIDIA.
In the short to medium term, Jefferies suggests that investor focus will likely be on the extent of the upside potential for NVIDIA. While there may be curiosity about growth expectations for 2026, the current six to nine-month period is expected to center on the levels of growth NVIDIA can achieve in the near future.
In summary, Jefferies' reiteration of the Buy rating and price target reflects a strong conviction in NVIDIA's market position and growth prospects over the next few years. The firm's analysis points to a sustained demand for NVIDIA's advanced computing products and a market environment that could benefit the company's financial performance.
In other recent news, NVIDIA has been making significant strides in the AI industry, with several firms expressing confidence in the tech giant's prospects. NVIDIA reported record-breaking total revenue of $35.1 billion, surpassing expectations. The revenue outlook for the next quarter is estimated at $37.5 billion, with the company's Blackwell chips expected to significantly contribute to the revenue streams.
Analyst firms including Wolfe Research, Craig-Hallum, DA Davidson, Itau BBA, and William Blair have expressed confidence in NVIDIA's growth trajectory. Wolfe Research increased NVIDIA's price target to $180, citing the company's strong positioning in the AI sector. Craig-Hallum affirmed a Buy rating on NVIDIA shares, citing long-term hardware and full-stack advantages. DA Davidson raised its price target for NVIDIA to $135, citing solid results and the Blackwell shipping timeline. Itau BBA maintained an Outperform rating on NVIDIA shares, confident in the company's EPS momentum. William Blair highlighted the anticipated success of NVIDIA's Blackwell chips.
NVIDIA's Blackwell chips are expected to significantly contribute to revenue streams, with production shipments projected to ramp up in the fourth quarter. Despite potential short-term pressure on gross margins due to the initial ramp-up of the Blackwell product, margins are expected to rebound in the second half, returning to the mid-70% level. High demand for Blackwell is expected to outstrip supply for several quarters due to supply limitations.
InvestingPro Insights
NVIDIA's robust market position, as highlighted by Jefferies, is further supported by real-time data and insights from InvestingPro. The company's financial metrics underscore its exceptional performance and growth trajectory. NVIDIA's revenue growth of 152.44% over the last twelve months as of Q3 2025 aligns with Jefferies' expectation of strong demand for its products. This is complemented by an impressive EBITDA growth of 228.24% over the same period, indicating the company's ability to translate sales into substantial profits.
InvestingPro Tips reveal that NVIDIA has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. This score supports Jefferies' optimistic outlook on the company's future performance. Additionally, the tip highlighting that 33 analysts have revised their earnings upwards for the upcoming period corroborates the positive sentiment expressed in the article.
For investors seeking a deeper understanding of NVIDIA's potential, InvestingPro offers 21 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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