BNP Paribas has raised its target price for Nvidia to $345 from $285 while retaining an ‘Outperform' rating on the US chipmaker, citing the company's expanding advantage across the artificial intelligence infrastructure stack.
Based on Nvidia's October 2 closing price of around $234, the revised target indicates potential upside of nearly 47%, reports said, citing a BNP Paribas note.
The brokerage said Nvidia's strength is no longer limited to AI training chips, with the industry increasingly shifting towards more complex inference workloads. It believes the company's integrated offering of GPUs, CPUs, networking and software could help it defend its leadership even as competition intensifies.
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A key part of the thesis is Nvidia's upcoming Vera Rubin platform, which is designed as a rack-scale system combining multiple components for demanding AI applications.
BNP Paribas expects such architectures to become increasingly important as AI agents perform multi-step reasoning, interact with external tools and process longer contexts.
According to the brokerage, these workloads require faster data movement, memory capacity and networking alongside computing power.
Nvidia's CUDA software ecosystem and NVLink interconnect technology could therefore provide an advantage over standalone competing chips.
BNP Paribas expects Nvidia to retain at least 75% of the AI compute market by dollar value, despite growing competition from AMD and custom accelerators developed by major technology companies.
The brokerage also sees opportunities for Nvidia beyond GPUs, particularly in server CPUs and networking. It expects the networking business to become increasingly important as AI infrastructure expands into larger, interconnected systems.
BNP Paribas expects Nvidia's gross margins to remain above 70% and values the company at 15 times CY28 earnings, along with cash, to arrive at the $345 target.
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