Wells Fargo Maintains $220 Price Target on Nvidia

Wells Fargo analyst Aaron Rakers reiterated on September 11, 2025, an ‘Overweight’ rating on Nvidia, with a $220 price target.

“At today’s AI Infra Summit, NVDA VP of Hypercale & HPC Ian Buck introduced the company’s Rubin CPX—a new class of purpose-built GPU to deliver high-performance massive context processing; GA in late-2026 via Vera-Rubin NVL144 rack-scale systems

Initial Thoughts

What’s Rubin CPX?: Mr.

Buck highlighted the Rubin CPX integrated in the company’s next-generation (2026) Vera-Rubin NVL144 compute trak—consisting of 4x Rubin GPUs + 2 Arm-based next-gen Vera CPUs + 8 Rubin CPX GPUs.

The company notes that this solution provides 30 PFLOPs of NVFP4 performances in a modular die; coupled with 128GB of GDDR7 memory.

The new chips integrate 4x NVENC and 4X NVDEC video encoders on-chip, which are noted to streamline multi-media workflows w/o external processing.

The company highlights that the Rubin CPX chips deliver 3x the attention processing speeds of NVIDIA’s current flagship GB300 (Blackwell Ultra) systems.

These next-gen compute trays will be integrated as part of NVIDIA’s Vera-Rubin rack-scale NVL144 systems using the Kyber rack design with NVIDIA’s next-gen ConnectX-9 NICs for 1.6T networking; also integrating with NVIDIA’s Spectrum6 (102.4T) Ethernet switching silicon and co-packaged optics.

These systems are expected to be GA in late-2026; following anticipated Rubin GPU launch in 1H2026.

Target Price Valuation: $220.00 from NC

Our $220 price target is ~29x P/E on our C2027E.

This compare to NVDA trading at a ~36x median NTM P/E on consensus estimates over the past three years.

We think a premium multiple for NVIDIA is warranted given its strong multi-year competitive positioning for data center growth, driven by cloud and AI, gaming, next-generation autonomous vehicles, and an expanding ecosystem of products/applications (e.g., Omniverse).

Risks include

• increased competition in the PC gaming, cloud data center markets, and high-performance computing,
• the continued development of new markets, including artificial intelligence/machine learning and autonomous driving,
• delays in product introduction due to use of third-party process technology, component availability, etc.”

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