Raymond James has raised its Nvidia (NASDAQ: NVDA) stock price target to $352 from $330 while maintaining a ‘Strong Buy’ rating on the semiconductor giant.
The updated target implies approximately 68.8% upside from Nvidia’s current share price of $208, according to the firm’s August 25 research note.
The revision comes as Raymond James analyst Simon Leopold highlighted Nvidia’s expanding CPU business, strong earnings outlook, and attractive valuation relative to its growth prospects.
Leopold cited growing confidence in the company’s CPU segment and long-term revenue potential. According to the note, CPU revenue currently accounts for roughly 3% of Nvidia’s sales and is projected to reach approximately 5% by fiscal 2028.
Raymond James expects CPU growth to be the fastest-growing component of Nvidia’s business and believes the company could become a leader in the CPU market within several years.
The firm also forecasts that Nvidia’s sales and net income growth will exceed 20% in fiscal 2028, supporting a higher valuation multiple.
The analyst further argued that Nvidia’s CPU products could complement its dominant GPU business, particularly as demand grows for AI and agentic computing applications.
At the same time, Leopold noted that Nvidia trades at less than 15 times fiscal 2027 GAAP earnings, below the S&P 500’s 18.6 times multiple. Raymond James views this discount as difficult to justify given Nvidia’s growth profile and market leadership.
To derive its new target, the firm applied a 22x multiple to its fiscal 2028 earnings estimate. Leopold described the valuation as a conservative premium relative to the broader market.
Wall Street bullish on Nvidia stock ahead of earnings
The latest upgrade adds to already strong Wall Street sentiment toward the technology giant. Based on data from 29 analysts tracked by TipRanks, Nvidia holds a unanimous ‘Strong Buy’ consensus rating. The average NVDA stock forecast stands at $306.48, implying upside of about 47% from current levels. The highest analyst target is $425, while the lowest stands at $250.
The outlook comes as Nvidia prepares to report fiscal second-quarter 2027 results after the market closes on August 26.
Analysts expect revenue of about $92 billion and adjusted earnings of $2.09 per share, both nearly double year-over-year levels and slightly above the company’s prior guidance of roughly $91 billion in revenue.
The data center segment is expected to remain the primary growth driver as demand for AI chips stays strong.
While investors largely anticipate another solid quarter, the focus will be on third-quarter guidance, with Wall Street looking for revenue forecasts of $103 billion to $104 billion or higher.
Updates on the Blackwell rollout, gross margins near 75%, and developments related to China shipments will also be closely watched.
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