Jefferies has lifted its Nvidia price target from $220 to $240, maintaining a Buy rating on the semiconductor leader. The revised target reflects growing confidence in Nvidia’s record-breaking AI chip orders and long-term revenue visibility. Currently trading at $206.88, Nvidia stock remains just under its 52-week high of $212.19, suggesting further upside potential.
AI Demand Fuels Record Revenue Outlook
The updated Jefferies Nvidia price target follows the company’s strong outlook shared during its GTC DC conference. Nvidia expects to fulfill $500 billion in AI chip orders across 2025 and 2026 for its next-generation Blackwell and Rubin architectures. Jefferies’ bottom-up analysis estimates $464 billion in potential revenue over those years, with an additional $36 billion in upside if Nvidia fully meets demand projections.
Jefferies has also adjusted its revenue forecasts upward to $293 billion for 2026 and $384 billion for 2027, reflecting an optimistic long-term trajectory. The firm now anticipates $9.00 EPS for 2027, with potential for more than $10 per share based on Nvidia’s current growth pace.
Nvidia’s Expanding AI Ecosystem
Beyond hardware, Nvidia continues to dominate AI infrastructure partnerships worldwide. Digital Realty Trust announced a new collaboration with Nvidia to expand data center capacity at its Northern Virginia AI Factory Research Center, focusing on energy efficiency and next-gen AI integration. Meanwhile, Amazon’s $38 billion cloud deal with OpenAI and Microsoft’s U.S.-approved export of Nvidia AI chips to the UAE further highlight Nvidia’s central role in powering global AI ecosystems.
In South Korea, Hyundai Motor Group is joining forces with Nvidia to build a $3 billion national AI cluster, reinforcing the chipmaker’s influence across industries. Nvidia is also investing up to $1 billion in the AI startup Poolside, aiming to accelerate innovation within the AI software landscape.
Strong Fundamentals and Market Confidence
Nvidia’s fundamentals remain unmatched, boasting 71.55% year-over-year revenue growth and a five-year CAGR of 64%. Its current P/E ratio of 59.19 and PEG ratio of 0.88 still signal reasonable value given the company’s growth momentum. With earnings due in 15 days, investors are watching closely to see whether Nvidia can sustain its historic performance streak.
Jefferies’ bullish stance reinforces what investors already suspect — Nvidia’s dominance in the AI chip market is far from peaking. If its forecasts hold true, the Jefferies Nvidia price target of $240 may prove conservative as global demand for AI accelerates.
