JPMorgan has reaffirmed its Overweight rating on Nvidia with a raised price target of $320, citing the chipmaker's strong growth trajectory in artificial intelligence infrastructure. Baird separately maintained an Outperform rating and a $500 price target.
Nvidia's market capitalization has expanded to $5.25 trillion, supported by revenue growth of 83% over the last twelve months. The company's fiscal 2028 revenue growth framework is projected at 70% year-over-year, driven by hyperscalers, neoclouds, AI labs, sovereign AI initiatives, and enterprise demand.
Analysts at JPMorgan and Nvidia held a virtual non-deal roadshow, with JPMorgan's Harlan Sur and Nvidia's Toshiya Hari participating. Hari emphasized that supply constraints, rather than demand, are currently limiting growth potential. He noted that absent supply limitations, Nvidia's business could more than double year-over-year.
The revenue mix between training and inference workloads has shifted over the past 18 months, with inference now representing the larger share. Nvidia's platforms, such as Grace Blackwell, are designed to be fungible, allowing customers to transition from training to inference workloads as needed.
Recent developments include a $35 billion cloud-computing agreement between Anthropic and Lambda, with Hut 8 developing a data center in Texas to support the initiative. Reports also suggest Nvidia acquired Hugging Face to bolster its position in the open-source AI ecosystem. Additionally, Nvidia has revived its Rubin CPX chip program, with production slated to begin in the first quarter of 2027, according to TF International Securities.
Nvidia paused a financing program involving revenue-sharing arrangements with AI cloud providers due to potential antitrust concerns. The company's P/E ratio stands at 27.5, reflecting its premium valuation amid rapid growth.
