Jefferies maintains NVIDIA stock Buy rating, $185 target

On Friday, Jefferies analyst Blayne Curtis maintained a Buy rating on NVIDIA (NASDAQ:NVDA) stock, with a steady price target of $185.00. The semiconductor giant, now valued at over $3.3 trillion, maintains a "GREAT" financial health rating according to InvestingPro analysis, with a perfect Piotroski Score of 9. Curtis highlighted a positive shift in expectations following Foxconn (SS:601138)'s latest revenue report, which indicated a 3% increase. The improvement in Foxconn's outlook, suggesting that first-quarter revenue growth in 2025 is likely to surpass average predictions, is seen as a positive development for NVIDIA, especially amidst concerns about potential delays in the company's Blackwell product rollout. This optimism aligns with NVIDIA's impressive performance, having achieved 152% revenue growth in the last twelve months, with industry-leading gross margins of nearly 76%.

Curtis expressed confidence in the ongoing progress of NVIDIA's Blackwell project, despite recent apprehensions regarding supply chain issues. The analyst emphasized that the supply chain data coming from Asia should be considered less significant, asserting that fears of a disappointing quarter for NVIDIA are exaggerated.

The commentary from Jefferies comes at a time when investors are closely monitoring NVIDIA's performance, particularly in light of the supply chain disruptions that have affected various technology companies. Curtis's reiteration of the Buy rating suggests a belief in NVIDIA's resilience and potential for growth despite these challenges. InvestingPro subscribers can access over 15 additional ProTips and comprehensive financial metrics to better evaluate NVIDIA's market position and growth potential.

Investors have been concerned about the impact of the supply chain on NVIDIA's ability to deliver on its product pipeline. The recent update from Foxconn, one of the largest electronics manufacturers and a key player in the supply chain, appears to alleviate some of those concerns, indicating a smoother ramp-up for NVIDIA's products.

For those interested in further insights and analysis, Jefferies has offered to provide a copy of their AI Accelerator Model upon request. This model likely includes more detailed projections and expectations for NVIDIA's future performance in relation to its AI technology and product offerings. With analyst consensus remaining strongly bullish and price targets ranging from $120 to $220, investors seeking detailed valuation analysis and comprehensive research can access NVIDIA's full Pro Research Report, available exclusively on InvestingPro.

In other recent news, Arm, a UK-based company, is reportedly expanding its business model, considering selling its own chips and recruiting from its customer base. This marks a significant shift for Arm, which traditionally licensed its intellectual property to other companies, as it now competes with its customers, such as Qualcomm (NASDAQ:QCOM), for deals.

In parallel, the European Commission has launched InvestAI, a €200 billion initiative aimed at boosting AI development in Europe. The initiative includes a €20 billion fund for the development of AI gigafactories, aiming to establish Europe as a primary hub for AI.

Meanwhile, according to Barclays (LON:BARC), DeepSeek's new model, R1, is showing promising performance levels, rivaling OpenAI's o1 model, and impacting user retention rates for subscription-based language models.

In other developments, OpenAI is advancing its plan to develop in-house AI chips, reducing its dependency on Nvidia for its chip supply.

Lastly, Citi analysts have revised their outlook on Nvidia, reducing the price target to $163 but maintaining a Buy rating. This adjustment comes ahead of Nvidia's upcoming earnings report, with the analysts projecting $38 billion in sales for the January quarter and $42.5 billion for the April quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.