Raymond James Raises NVIDIA Price Target to $352

Raymond James analyst Simon Leopold raised the price target on NVIDIA (NASDAQ: NVDA) to $352 (from $330) while maintaining a Strong Buy rating.

“Strong Buy-rated NVIDIA has increased its visibility in CPUs even if they are not a new part of the story.

However, CPUs represent a low singledigit percent of NVIDIA’s sales — roughly 3% today.

In the past, NVIDIA’s CPUs were tightly tied to its GPUs, but that should change, particularly with agentic use cases.

While NVIDIA’s CPU revenue is becoming material within the CPU market, we expect it to reach approximately 5% of total revenue by CY28 in our model — still a single-digit portion, yet the growth is the fastest among the elements we model.

We have extended our model through FY29/CY28 as well as refined our segment assumptions.

Among the surprising conclusions from our market analysis is the prospect that NVIDIA could become the world leader in CPU revenue within several years.

We have been disappointed with the stock’s year-to-date performance with the shares up only 12% largely matching the S&P 500 index.

The stock trades with a CY27 GAAP P/E of less than 15x, which is below the S&P 500’s 18.6x.

The discount strikes us as fundamentally illogical considering that sales and net income growth still exceeds 20% in your CY28 estimates.

Typically, a company with sustainable growth, barriers to entry (e.g., Cuda, leading GPU performance), and healthy free cash flow trade with multiples above the overall market.

Factors that may weigh on NVIDIA’s shares: ● With a market cap of $5.2 trillion, that market may have a limited appetite for further exposure ● Fear that the AI boom turns to a bust ● Decelerating growth ● Peaking growth and peaking margin Valuation: Our $352 price target, up from $330, is based on a 22x multiple applied to our new CY28 estimates.

This represents a premium to the S&P 500’s ~19x CY27. Considering NVIDIA’s industry leadership and strong growth, the market premium is conservative.

The median NTM P/E has been 35x over the past 5 years.”

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