UBS Reiterates Buy on NVIDIA, $185 Price Target

UBS analyst Timothy Arcuri reiterated a Buy rating and $185 price target on NVIDIA (NASDAQ: NVDA).

“While not underwriting a specific data center capex forecast, in our view NVDA’s commentary at the session begged the conclusion that it believes its data center revenue can grow >2x from C2025 (UBSe ~$215B, Street ~$180B) to C2028 which would imply EPS in the ~$12/share range in this timeframe.

The company also highlighted that many measures of data center capex often miss some of the largest clusters currently in development including xAI, OpenAI, Sovereign, and many of the Neoclouds.

Other highlights include: 1) NVDA again pushed back on the compute intensity debate and strongly reiterate that improvements in reasoning models is actually driving compute intensity up as machines have to “think for themselves” to solve issues, and faster inference is required; 2) much has been made of the ability to run some of these new models on cheaper hardware but in many cases NVDA believes this will not be the most economical approach because there will be speed and performance trade-offs; 3) NVDA stressed that it is in the infrastructure business and it is the only realistic option that customers can count on when planning this far in advance for large scale deployment (versus, say, custom ASICs).”

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