Jefferies analysts are bullish on Buy-rated NVIDIA (NVDA), raising their price target to $150 per share from $135 in a note Monday.
This increase reflects positive takeaways from their recent Asia trip and upcoming meetings with key players in the AI space.
In a recent note, analysts acknowledge mixed performance within the AI sector. While Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) have shown strength, there are growing investor concerns regarding AMD and Marvell (MRVL). However, analysts believe it's "too early to call any losers for 2025."
Nvidia, according to analysts, remains "both king and kingmaker" within the AI ecosystem. Their upcoming "AI Bus Tour" aims to gather insights from industry leaders, including Nvidia management.
A key focus will be Nvidia's next-generation platform, the GB200 NVL. Analysts are particularly interested in exploring "what this transition will mean for the rest of the ecosystem."
Analysts cite findings from their mid-May Asia trip as a reason for their optimism on Nvidia. They observed a significant increase in chip production capacity planned for the second half of 2024. Data from Fubon, a Taiwanese investment firm, suggests a 25% overall capacity increase for Nvidia, with some partners like Blackwell seeing a 40% jump.
Based on these findings, analysts have revised their estimates for the GB200 NVL, anticipating volumes of 60,000 units compared to their previous estimate of 40,000. This increase is primarily driven by the NVL 36 variant, expected to reach 50,000 units. Despite these revisions, analysts note they are still "over $50B below our bottom-up check for CY25," suggesting even more potential upside for Nvidia.