Jefferies maintains NVIDIA stock Buy rating with $185 target

Published 29/05/2025, 06:42
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On Thursday, Jefferies reiterated its Buy rating and $185.00 price target for NVIDIA stock (NASDAQ:NVDA), citing several positive developments for the technology company. With a perfect Piotroski Score of 9 and an EXCELLENT financial health rating according to InvestingPro, NVIDIA continues to demonstrate strong fundamentals. The firm’s analysts highlighted the resolution of past concerns regarding the disparity between Blackwell sales and GB200 shipments, noting that inventory issues are being quickly resolved as NVIDIA reported that multiple hyperscalers are ramping up to 1,000 NVL72 units per week.

The analysts pointed out that while they would not expect a consistent rate of several thousand NVL72s weekly, the indication is clear that any inventory buildup is being rapidly cleared. Additionally, NVIDIA began sampling its GB300 with major cloud service providers earlier this month, with production volumes anticipated for the July quarter. This new product is expected to benefit from the improvements made in the GB200 series. The company’s strong execution is reflected in its impressive 114.2% revenue growth over the last twelve months.

On the demand side, NVIDIA has visibility into projects exceeding 10GW, which represents a $40-50 per GW opportunity. This demand is driven by accelerating traction in Sovereign AI, bolstered by significant commitments from the United Arab Emirates and Saudi Arabia. Furthermore, NVIDIA’s networking revenue is also showing signs of growth, with Spectrum-X adding two new customers, Google (NASDAQ:GOOGL) and Meta (NASDAQ:META), and NVLink generating over $1 billion in revenue in the April quarter.

The analysts concluded that the second half of 2025 is shaping up well for NVIDIA, with the potential for the company to exceed expectations and raise forecasts. This outlook contrasts with the challenges anticipated for other companies in the AI sector. For deeper insights into NVIDIA’s valuation and growth prospects, InvestingPro offers comprehensive analysis, including 18 additional ProTips and a detailed Pro Research Report, helping investors make more informed decisions about this semiconductor giant trading at a P/E ratio of 46.09.

In other recent news, NVIDIA Corporation reported a higher-than-expected revenue for the April quarter at $44.1 billion, surpassing the consensus estimate of $43.3 billion. The company projected revenues of around $45 billion for the July quarter, aligning with market expectations. Mizuho (NYSE:MFG) Securities raised NVIDIA’s stock price target to $170, highlighting strong Data Center revenues and increased shipments of Blackwell products. DA Davidson also adjusted its price target to $135, noting the absence of H20 product sales in China as a challenge. Meanwhile, Cantor Fitzgerald maintained its $200 target, citing NVIDIA’s optimistic revenue forecast and rapid adoption of Blackwell GPUs. Evercore ISI reaffirmed its Outperform rating with a $190 target, emphasizing growth in NVIDIA’s Data Center business and the upcoming production ramp of the Blackwell GB300 chip. Truist Securities raised its price target to $210, acknowledging stronger-than-anticipated financial performance despite export control challenges. These developments reflect varied analyst perspectives on NVIDIA’s financial health and market position.

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