Why Nvidia (NVDA) Stock Is Up and What Jefferies Expects Ahead

Nvidia (NASDAQ:NVDA) shares are up 2% today after CEO Jensen Huang laid out what may be the most bullish long-term vision for artificial intelligence investors have heard in months – a roadmap that points to trillions of dollars in AI infrastructure spending by the end of the decade.

Speaking at the World Economic Forum, Huang urged investors to rethink how they define AI. Rather than viewing it as a software-driven race focused solely on models, he described AI as a deeply industrial platform made up of multiple interdependent layers. At the foundation sits energy, followed by chips and computing infrastructure, then cloud services, AI models, and ultimately the application layer, where real economic value is created.

That layered structure matters, Huang explained, because every breakthrough at the top requires massive investment below. The recent surge in AI applications, from healthcare and finance to manufacturing and robotics, is only possible because the underlying compute stack is finally mature enough to support them. And supporting that stack, he argued, is setting off what he called the largest infrastructure buildout in human history.

So far, only a few hundred billion dollars have been deployed toward AI infrastructure, a surprisingly small sum given the scale of what lies ahead. Huang said trillions more will be needed to build out data centers, AI factories, chip fabs, memory plants, and the computing backbone required to process the enormous volumes of data these systems consume in real time.

The ripple effects are already visible across the semiconductor ecosystem. TSMC has outlined plans to build dozens of new chip plants, while partners such as Foxconn, Wistron, and Quanta are expanding computer manufacturing capacity worldwide. Memory suppliers are also scaling rapidly, with Micron committing roughly $200 billion to U.S. investment and both SK Hynix and Samsung stepping up production to meet AI-driven demand.

For Nvidia, this dynamic plays directly to its strengths. As the company at the center of accelerated computing, a multi-year surge in infrastructure spending supports sustained demand for its GPUs, networking hardware, and AI platforms.

Wall Street appears aligned with that view. Jefferies analyst Blayne Curtis recently argued that Nvidia’s valuation still looks compelling despite its massive run.

“NVDA remains pretty cheap, trading at mid-teens our bottom-up implied CY27 estimate with more upside potential from there (while estimate revisions won’t be as large as AVGO, we still expect material beats and raises with estimates moving higher over the next several quarters). We are positive on the GP Server growth for AMD through the year, expecting both strong market growth and share gains,” Curtis noted.

To this end, Curtis rates NVDA shares a Buy, with his $275 price target pointing to 52% upside. (To watch Curtis’ track record, click here)

The broader consensus supports that optimism. Nvidia carries a Strong Buy rating from 41 Wall Street analysts, with 39 Buy ratings, one Hold, and one Sell. The average 12-month price target stands at $263.44, implying ~46% upside from recent levels. (See NVDA stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

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.