Nvidia's target price has become $240!

Jefferies raised its target price for Nvidia (NVDA) from $220 to $240. This increase is supported by the ongoing demand for artificial intelligence (AI) computing infrastructure and expanding visibility into the company's order book. However, the firm removed Nvidia from its Franchise Picks list while maintaining a Buy rating.

According to analyst Blayne Curtis, hyper-scale cloud providers such as Google, OpenAI, and Anthropic are competing for resources as AI capabilities increase worldwide. Jefferies noted that Nvidia is expected to receive around $500 billion in orders between 2025 and 2026. These orders will be for the Blackwell and future Rubin GPU platforms.

The company has updated its sales forecasts for 2026 and 2027 to $293 billion and $384 billion respectively; these are higher than the previous estimates of $283 billion and $334 billion. The analyst's model predicts that earnings per share will be $9 in 2027, but it is also stated that this figure could exceed $10.

Jefferies set the new $240 target price at 27 times the 2027 earnings, reflecting continued leadership in the AI accelerator market. Nvidia shares rose more than 2% in recent trading, as investors increased their bets on long-term demand for AI infrastructure, expanding their gains since the beginning of the year.