Jefferies Bangs the Drum on Nvidia Stock

Nvidia (NASDAQ:NVDA) shares are back in rally mode. Since hitting a low in early April, following market turmoil sparked by Trump’s sweeping tariff plans, the stock has soared 50%. The momentum was fueled by a strong Q1 report that confirmed Nvidia’s ability to deliver, even with the China chip ban in effect.

Wall Street is taking notice. Jefferies’ Blayne Curtis, one of the top 1% of analysts on the Street, just added Nvidia to his elite list of Franchise Picks, signaling renewed conviction in the chipmaker’s long-term upside.

What’s behind its inclusion? The 5-star analyst explained: “We view NVDA as the dominant supplier of AI accelerators within the data center, an industry that is expanding rapidly due to the development and adoption of AI. The ramp of the co’s next-generation Blackwell GPU platform is now fully underway, so GM should improve from the low-70% to mid-70% range throughout the year.”

Moreover, sovereign AI is seeing a significant boost, with recent commitments from Saudi Arabia and the UAE to develop their AI infrastructure in partnership with Nvidia.

What Curtis thinks the market seems to be overlooking is that Nvidia’s revenue guide – roughly in line with Street expectations for next quarter – is actually a “major positive.” The company managed to absorb around $8 billion in revenue headwinds from the H20 export restrictions to China, which was notably higher than the $5 to $6 billion the Street had anticipated. Looking ahead to the second half of the year, Curtis sees a “favorable setup” as Blackwell Ultra ramps up and the company continues to see solid momentum in networking (NVLink and Spectrum-X). Curtis also expects a more seamless transition to Nvidia’s next-generation Rubin platform, thanks to its architectural similarity to Blackwell.

Potential catalysts to look forward to include stronger-than-expected demand for Blackwell, mainly fueled by rising CSP (cloud service provider) spending; further sovereign AI investments; the unveiling of a data center product tailored for China; and increased capital expenditures from hyperscalers.

Bottom line, Curtis is backing Nvidia with conviction, assigning a Buy rating and a $185 price target – implying a 31% upside from current levels. (To watch Curtis’s track record, click here)

That’s a pretty common take on Wall Street; based on a mix of 35 Buys, 4 Holds and 1 Sell, NVDA stock claims a Strong Buy consensus rating. Going by the $173.57 average price target, a year from now, shares will deliver returns of ~22%. (See NVDA stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.