NVIDIA Stock Analysis as Wall Street Bank Sees a 80% Jump

Key Insights

• Raymond James analysts boosted the NVIDIA stock price target to $323.
• The analyst noted that the $2 trillion revenue estimate is too conservative.
• Other analysts tracking the company have a bullish outlook, with the consensus target being $275.

NVIDIA stock dropped for three consecutive days, even after a senior analyst at Raymond James upgraded it and boosted his target to $323, up by 80% from the current level. NVDA dropped to $177, down by ~16% from its all-time high.

Raymond James Upgrades NVIDIA Stock to $323

Wall Street analysts are still bullish on the NVDA stock after GPU Tech Conference (GTC), in which the management guided to $1 trillion in revenue through 2028 amid the rising demand for its GPUs.

In a research note, Raymond James analyst Simon Leopold upgraded his outlook on the stock to a strong buy.

He upgraded his target to $323, up by 80% from the current level, noting that the $1 trillion chip sales target was highly conservative. As a result, he expects total sales to be $1.2 trillion for Vera Rubin Ulta and Groq LPX.

Other top analysts have recently raised their estimates for NVIDIA stock. For example, William Stein, an analyst at Truist, boosted the target from $283 to $287. Most analysts have target prices above $230, with the consensus target at $275.

Strong Revenue Growth and Valuation

These analysts point to the company’s revenue and profitability growth as it continues to launch new products. Data compiled by Yahoo Finance shows that the company will report $78.50 billion in revenue this quarter, up 78% from the first quarter of last year. In contrast, according to FactSet, analysts expect that the S&P 500 earnings growth will be 11.6%.

NVIDIA’s earnings growth is also continuing, with average earnings per share (EPS) expected to be $1.78, up 119% YoY. This growth rate makes it one of the fastest-growing companies in the United States.

Still, despite these forecasts, NVIDIA is trading as a value stock. For example, the company trades at a forward earnings multiple of 21.38, lower than the S&P 500 Index, which has a multiple of 23.

NVIDIA has some major growth catalysts. For example, in a statement this week, Elon Musk noted that SpaceX AI will continue spending billions of dollars a year buying chips from NVIDIA. This is despite Tesla now building its chips in collaboration with Samsung, a South Korean company.

Other companies are planning to boost their spending. In a statement this week, Meta Platforms reached a $27 billion deal with Nebius. This deal will exclusively use NVIDIA chips even as Meta continues building its ASIC chips.

Companies like Microsoft, CoreWeave, and IREN are planning to spend billions of dollars in the coming years, with most of them flowing directly to NVIDIA.

The company is also working on additional products to boost sales, including its upcoming CPU, which will put it directly in competition with top names like AMD and Intel.

It is also putting more pressure on the Donald Trump administration to allow it to ship chips to China, the biggest market in the industry.

NVDA Stock Price Analysis

The three-day chart shows that the NVDA stock price bottomed at $86.20 in April last year when Trump unveiled his reciprocal tariffs. It then started a strong surge to a record high of $212.

Most recently, however, the stock has pulled back and moved sideways for over three months. It has remained within the narrow range of $171 to $196, despite publishing two strong results during this period.

The Average True Range (ATR) has retreated from 13 in November to 10 today, a sign that its volatility has dropped.

Therefore, the NVDA stock will likely remain in the current range in the coming weeks and then rebound, potentially to its all time high and above. That move will be confirmed if it breaks above the channel’s upper boundary at $196.

On the flip side, dropping below the channel’s lower boundary at $171 will invalidate the bullish thesis and signal more downside.

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