Raymond James Affirms Outperform on NVIDIA, $170 Price Target

Raymond James analyst Srini Pajjuri reiterated an Outperform rating and $170 price target on NVIDIA (NASDAQ: NVDA).

“F4Q results were consistent with our recent expectations while F1Q outlook was better.

Blackwell was particularly strong and appears on track to exceed Hopper revenue in F1Q, suggesting that delays are now behind. Growth was driven by U.S.

Hyperscalers while China declined as a % of sales (14%), which should help allay concerns regarding export restrictions.

The company is seeing an acceleration in inferencing demand as reasoning models (such as DeepSeek) require significantly higher compute (up to 100x, per management).

Management did not specifically comment on 2026 but sounded confident about its mid and long-term prospects based partly on its engagements in emerging areas such as Agentic AI and Physical AI (robotics).

On the other hand, F1Q gross margin outlook is slightly weaker although management continues to see mid 70% levels later in the year.

Networking declined q/q for a second quarter in a row, likely due to timing issues.

Overall, we view the results/outlook as solid and expect sentiment to further improve heading into GTC conference. Reiterate Strong Buy.”

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