Rosenblatt Raises NVIDIA Price Target to $390

Rosenblatt analyst Kevin Cassidy raised the price target on NVIDIA (NASDAQ: NVDA) to $390 while maintaining a Buy rating.

“Expanding Demand & Deepening Moat: AI platform demand continues to accelerate, increasingly driven by the ACIE segment (AI Clouds, Industrial, Enterprise, and Sovereigns), which management expects to outpace hyperscaler growth longer-term.

NVIDIA’s flexible architecture, full-stack software, and full-system deployment capabilities form a formidable competitive moat across these expanding verticals.

Massive FY28 Guidance Beat: Management guided to 70% Y/Y revenue growth for FY28, crushing the ~45% consensus.

This reflects a heavily supply-constrained environment; unconstrained demand could support 100%+ growth.

Aggressive Balance Sheet Leverage: To secure deliveries and alleviate bottlenecks, NVIDIA increased its multi-year purchase commitments by ~135% Q/Q to $279B, primarily for memory.

While absorbing some memory price hikes will temporarily pressure gross margins, use of the balance sheet to guarantee supply acts as a powerful secondary competitive moat.

Historic Vera Rubin Ramp: The newly launched Vera Rubin architecture marks the fastest product ramp in company history and is projected to account for 20% of 3QF27 Data Center revenue.

The company’s multi-year roadmap delivering progressive compute-per-watt gains secures NVIDIA’s structural AI market leadership.

Robust Capital Returns: Year-to-date, NVIDIA has returned $26B (60% of FCF) to shareholders via $20B in buybacks and $6B in dividends, with management signaling plans to increase the return of excess free cash flow net of strategic uses moving forward.

Valuation Update: We are increasing our forward estimates and raising our 12-month price target to $390, maintaining our 25x multiple on FY28E Non-GAAP EPS.”

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