Banking giant Barclays has reiterated its bullish stance on semiconductor titan Nvidia (NASDAQ: NVDA), raising its price target to $200, driven by surging demand for its artificial intelligence (AI) products.
The updated target suggests a potential 38% upside from Nvidia’s current trading price of $144.50.
In a June 17 investor note, Barclays analyst Thomas O’Malley reaffirmed an ‘Overweight’ rating on Nvidia, lifting the price target from $170 to $200.
The upgrade reflects growing optimism around a projected $2 billion revenue boost in July, fueled by accelerating demand for Agentic AI, increasing momentum in Blackwell chip production, and rising contributions from system sales.
Barclays has also revised its internal estimate for Nvidia’s compute revenue, raising it from $35.6 billion to $37 billion.
While current Blackwell production stands at around 30,000 units per month, slightly below earlier projections, O’Malley noted that improving supply chain conditions and higher utilization rates are positioning Nvidia for a strong second half.
Notably, Blackwell’s production capacity is expected to grow by 30% quarter-over-quarter, while average selling prices will likely trend higher, supporting gross margin expansion.
Growing revenue streams
In addition, system sales are becoming an increasingly significant revenue stream. O’Malley pointed out that systems could account for 25% of Nvidia’s July revenue and potentially as much as 50% by October.
Overall, Barclays remains highly optimistic, calling Nvidia the stock with the greatest upside potential in its coverage universe for the second half of the year.
The firm anticipates sustained strength into Q3 and Q4, supported by expanding AI adoption, full-scale production of Blackwell Ultra chips, and upward revisions to company guidance, all of which reinforce the decision to boost the price target.
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