Nvidia Price Target Raised to $240 at Jefferies on AI Compute Demand Surge

Jefferies raised its price target on Nvidia (NVDA, Financials) to $240 from $220, citing sustained demand for AI compute infrastructure and expanding visibility into the company's order pipeline. The firm maintained its Buy rating but removed Nvidia from its list of Franchise Picks.

According to analyst Blayne Curtis, hyperscale cloud providers like Google, OpenAI, and Anthropic are fighting for resources as AI capacity grows around the world. Jefferies said that Nvidia thinks it will fill about $500 billion in orders between 2025 and 2026. These orders will be for the Blackwell and future Rubin GPU platforms.

After seeing those numbers, the company raised its sales estimates for 2026 and 2027 to $293 billion and $384 billion, respectively, from $283 billion and $334 billion. The analyst's model says that earnings per share will be $9 in 2027, but they could go over $10.

Jefferies said its new $240 target is based on a 27-times multiple of 2027 earnings and reflects continued leadership in the AI accelerator market. Nvidia shares rose more than 2% in recent trading, extending year-to-date gains as investors bet on long-term demand for AI infrastructure.