Nvidia Gains Strong Wall Street Backing After CES AI Showcase – Raymond James Reportedly Expects A 42% Upside For The Stock

• Raymond James noted that strong December sales from Hon Hai Precision, better known as Foxconn, a key Nvidia partner, further support potential upside for the stock.
• The firm highlighted Nvidia’s investments in “Physical AI” systems, describing it as a long-term trend.
• Bank of America said Nvidia remains a leading choice in AI and reiterated a ‘Buy’ rating. 

Nvidia Corp. (NVDA) received a ‘Strong Buy’ rating from Raymond James, which pinned a price target of $272 on the stock, following CEO Jensen Huang’s Keynote address at the Consumer Electronics Show (CES).

The price target implies a potential 42% upside to the stock price of $191, on Tuesday. 

According to an Investing.com report, Raymond James said Huang’s presentation reinforced confidence in the company’s leadership in artificial intelligence, even though it contained no groundbreaking announcements.

Market Confidence Bolstered

Raymond James said Huang described demand as "really good," without sharing specifics. The firm noted that strong December sales from Hon Hai Precision, better known as Foxconn, a key Nvidia partner, further support potential upside for the stock. 

The firm also emphasized Nvidia’s two-year advance planning with supply chain partners, suggesting the company has mitigated potential memory chip shortages that have affected the industry.

Raymond James highlighted Nvidia’s investments in “Physical AI” systems, designed to function in real-world environments, describing it as a long-term trend extending into the next decade. 

Nvidia’s stock traded over 1% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘high’ from ‘low’ levels in 24 hours. 

Next-Generation Platforms

Nvidia on Monday unveiled its new AI chips, called Vera Rubin, which follow its groundbreaking Blackwell chips and are expected to be available in the second half of the year. The company said the new chips are five times faster than Blackwell, cut inference costs by ten times, and improve storage and connectivity compared with the previous generation.

Speaking to CNBC after his address, Huang said, “We are the only AI company in the world working with every AI company in the world.” He also emphasized that Nvidia runs every model from OpenAI to XAI and Google’s Gemini. 

The company also launched Alpamayo, a collection of AI tools and data that helps companies build self-driving cars more quickly and safely.

Analysts Express Confidence

According to a CNBC report, Bank of America said Nvidia remains a leading choice in AI and reiterated a ‘Buy’ rating on the stock. The firm continues to emphasize Nvidia’s strong position in AI computing, networking, systems, and overall ecosystem.

Wedbush analyst Dan Ives said the CES presentations from Nvidia and AMD confirmed that AI represents a “once-in-40-years tech spending paradigm shift” and that the AI investment phase is still in its early stages.

NVDA stock traded over 28% higher in the last 12 months. 

Also See: Why Did DRUG stock Rocket 51% Today?

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