UBS Keeps Buy on NVIDIA, $235 Price Target

UBS analyst Timothy Arcuri reiterated a Buy rating and $235 price target on NVIDIA (NASDAQ: NVDA).

“NVDA’s deal, as reported in the press, to license Groq’s high speed inference technology – while coming at a substantial $20B price tag – could bolster NVDA’s ability to service high speed inference applications, an area where GPUs are not ideally suited because of all the off chip HBM (high bandwidth memory).

This would also be one of the fastest growing parts of the inference market and we see this as another pivot (alongside Rubin CPX) to offering ASIC-like architectures in addition to its mainstream GPU roadmap.

Our own discussions with hyperscale experts over the past year suggested that many saw Groq’s offering as highly differentiated, frequently singled out among other accelerator startups.

We remain bullish on NVDA as we head into 2026 and expect stock price appreciation from here to be driven almost wholly by upwards EPS revisions, while we expect the NTM P/E multiple to remain in the 20x range based on consensus buy side EPS as the market looks past the ~$9-9.50 EPS for C2026 that is suggested by NVDA’s backlog and starts to look for visibility into C2027.”

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