Jefferies raises Nvidia stock price target to $205 on strong demand

Published 28/08/2025, 06:44
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Investing.com - Jefferies raised its price target on Nvidia (NASDAQ:NVDA) to $205.00 from $200.00 on Thursday, while maintaining a Buy rating on the semiconductor giant. The stock currently trades near its 52-week high of $184.48, with impressive revenue growth of 86% over the last twelve months.

The firm cited Nvidia’s October guidance aligning with lowered expectations and noted the smooth rollout of the B300 product line. Jefferies also highlighted that the Rubin project remains on track, with China licenses potentially adding $2-5 billion in October revenue. According to InvestingPro data, Nvidia maintains excellent financial health with industry-leading gross margins of 70%.

Networking revenue reached $7 billion with strength across NVLink, Spectrum-X, and Infiniband products, which Jefferies indicated provides a solid tailwind for gross margins. This performance contributes to Nvidia’s robust financial position, with InvestingPro analysis showing the company operates with moderate debt levels and maintains strong liquidity ratios.

The broader demand outlook remains intact, supported by improving return on investment dynamics, with Jefferies noting that a $3 million investment in GPUs can now generate up to $30 million in token revenues. The firm also pointed to accelerating hyperscaler capital expenditure and expected Sovereign revenue of $20 billion this year.

Jefferies reported that all Hopper and Blackwell products remain sold out, with one non-restricted customer even purchasing H20 chips, suggesting continued growth potential in both Compute and Networking segments as the situation in China evolves.

In other recent news, Nvidia reported second-quarter results that slightly exceeded consensus, although data center revenue fell short of expectations. KeyBanc raised its price target for Nvidia to $230, citing strong guidance, despite noting that data center compute remained flat while networking grew significantly. Piper Sandler reiterated an Overweight rating with a $225 target, highlighting Nvidia’s October quarter revenue guidance of $54 billion, which surpassed market expectations. This guidance does not account for potential revenue from Nvidia’s H20 chips, suggesting possible future gains. Truist Securities also increased its price target to $228, maintaining a Buy rating and describing the sales results as slightly below buy-side expectations. Meanwhile, DA Davidson raised its price target to $195, holding a Neutral rating due to mixed second-quarter results and concerns about H200 chip sales in China. Mizuho reiterated an Outperform rating with a $205 target, expecting Nvidia to maintain its leadership in AI training and inference chips. These developments reflect ongoing analyst confidence in Nvidia’s growth prospects, particularly in AI-related markets.

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