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NVIDIA target raised at Wolfe Research on positive supply chain checks

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Wolfe Research raised their price target for NVIDIA (NVDA) to $150 from $125 per share in a note Monday, citing positive supply chain checks indicating strong growth for the company in calendar year 2025 (CY25).

“Recent supply chain checks show a path to 50%+ content growth for NVDA GPUs in CY25,” stated the Wolfe Research note. Analysts attribute this growth to a transition to Nvidia (NASDAQ:NVDA)’s new Blackwell platform, resulting in “better ASPs and improved mix.”

Wolfe Research also sees potential for unit growth, noting early signs suggesting a 50% increase in GPU units for CY25. While they remain cautious about this figure in their current estimates, they acknowledge it could provide “further upside to our newly revised numbers.”

The report highlights Nvidia’s data center business as a key driver, expecting at least 50% growth in CY25. This is fueled by factors like cloud service providers adopting Blackwell, improved allocations for enterprises, and “Sovereign AI” providing additional revenue streams.

“We expect GB200 adoption to drive higher NVDA networking attach rates for both InfiniBand & NVDA Spectrum-X solutions, as well,” the note continues. This points toward growth in Nvidia’s networking portfolio, which is considered crucial for maximizing AI cluster performance.

Based on their revised estimates, Wolfe Research projects Nvidia’s FY26 revenue and EPS to reach $177.0 billion and $4.03, respectively. Their new $150 price target reflects a valuation of approximately 37x their FY26 EPS, aligning with Nvidia’s historical average.

Wolfe Research maintains their Outperform rating for Nvidia, impressed by the company’s “earnings momentum” and long-term potential in AI. They emphasize Nvidia’s strong position by highlighting its significant outperformance compared to broader markets and peers in the semiconductor space.

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