Nvidia: Expanding AI Data Center Opportunity and Deepening Moat Support Long-Term Buy Thesis

In a report released today, Timothy Arcuri from UBS maintained a Buy rating on Nvidia, with a price target of $245.00.

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Timothy Arcuri has given his Buy rating due to a combination of factors that underscore Nvidia’s long-term growth trajectory, particularly in data center and AI infrastructure. He highlights that Nvidia’s updated demand and backlog outlook now points to more than $1T in potential data center revenue for calendar years 2025–2027, a substantial step up from prior disclosures and a signal of sustained, structural AI demand that is still building within normal lead times.

Arcuri also emphasizes that Nvidia’s internal pipeline already appears to support upside versus current consensus expectations, with his own forecasts materially above the Street yet still generally aligned with the company’s new backlog slide. In addition, he points to the breadth of Nvidia’s product roadmap – including next‑generation accelerators, new inference solutions like LPU/Groq, and an increasingly important CPU offering – as evidence of a deepening competitive moat and expanding total addressable market that, in his view, justifies maintaining a Buy recommendation on NVDA.

In another report released today, Needham also assigned a Buy rating to the stock with a $240.00 price target.