NVIDIA (NVDA) Stock: Here’s What Wall Street Analysts See Coming Next

TLDR

• Jefferies raised NVIDIA’s price target to $275 from $250, maintaining a Buy rating, citing the stock trades at mid-teens multiple to 2027 estimates
• J.P. Morgan reiterated its Buy rating on NVIDIA on January 13
• NVIDIA and Eli Lilly announced a joint AI co-innovation lab with up to $1 billion investment over five years for drug discovery
• The lab will combine NVIDIA’s AI expertise with Lilly’s pharmaceutical knowledge to model complex biology
• Jefferies expects material beats and estimate increases for NVIDIA over the next several quarters

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Jefferies lifted its price target on NVIDIA to $275 from $250 on January 16. The firm maintained its Buy rating on the shares.

NVIDIA Corporation, NVDA

The investment bank updated its accelerator builds model extending to 2028. This revision drove the price target increase.

Jefferies told investors NVIDIA “remains pretty cheap” at current valuations. The stock trades at mid-teens multiple to the firm’s bottom-up implied 2027 estimate.

The analysts see upside potential beyond the 2027 timeframe. They expect material beats and raises with estimates moving higher over the next several quarters.

J.P. Morgan also weighed in with a Buy rating on January 13. The bank did not assign a specific price target.

NVIDIA and Lilly Partner on Drug Discovery

The rating updates came as NVIDIA announced a major partnership with Eli Lilly. The companies revealed plans for an AI co-innovation lab focused on drug discovery.

NVIDIA founder and CEO Jensen Huang made the announcement at the J.P. Morgan Healthcare Conference in San Francisco. He appeared alongside Lilly chair and CEO Dave Ricks.

The two companies will jointly invest up to $1 billion over five years. The funding will go toward infrastructure, talent, and computing power.

The lab will be located in the San Francisco Bay Area. It represents the first partnership of its kind between the two companies.

Combining AI and Pharmaceutical Expertise

The initiative aims to tackle complex biological modeling. NVIDIA brings AI leadership while Lilly contributes pharmaceutical industry expertise.

Management called it “a blueprint for what is possible in the future of drug discovery.” The partnership targets one of humanity’s greatest challenges in understanding biology.

While Jefferies raised estimates for NVIDIA, the firm noted revisions would be less substantial than for Broadcom. Broadcom remains Jefferies’ top pick in the semiconductor sector.

The investment bank models calendar year 2028 earnings per share for Broadcom to exceed $19. Conservative estimates for OpenAI and Meta suggest $25 EPS potential for Broadcom.

NVIDIA operates in the Compute & Networking and Graphics Processing Unit segments. The company designs and manufactures computer graphics processors, chipsets, and multimedia software.

The stock currently trades with a Strong Buy consensus rating of 1.34 on Wall Street. NVIDIA posted 65.22% revenue growth over the last twelve months, reaching $187.14 billion.

The current P/E ratio stands at 46.58. The PEG ratio sits at 0.77, suggesting the stock trades at a low P/E relative to near-term earnings growth.

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