Nvidia Price Target Jumped to $345 on AI Demand Surge

BNP Paribas has significantly raised its price target for Nvidia, citing the company's strong position in the booming AI market. The brokerage increased its target from $285 to $345, maintaining an Outperform rating. This new target suggests a potential 47% upside from Nvidia's closing price of $234 on October 2.

The upgrade comes as BNP Paribas expects Nvidia to retain at least three-fourths of the AI computing market by dollar value, despite growing competition from AMD and custom-designed accelerators. The firm highlights Nvidia's graphics processors as well as its upcoming Vera Rubin platform, which integrates computing, networking, and other components, as key factors in the company's success.

BNP Paribas also sees Nvidia's software and networking capabilities as crucial for defending its market position as AI infrastructure becomes more integrated. The brokerage forecasts that server CPUs and networking will contribute to the company's growth opportunities. Additionally, it anticipates gross margins staying above 70% despite competition.

To support the new target, BNP Paribas applies a 15-times multiple to estimated calendar 2028 earnings, along with cash. This optimistic outlook reflects the firm's confidence in Nvidia's ability to capitalize on the shift toward more demanding AI inference workloads.