Raymond James has raised its Nvidia stock price target to $352 from $330 while maintaining a 'Strong Buy' rating on the semiconductor giant, according to an August 25 research note.
The revised target represents an upside from Nvidia’s share price of $208. The update was driven by analyst Simon Leopold, who highlighted Nvidia’s expanding CPU business, strong earnings outlook, and valuation relative to its growth prospects.
CPU Segment and Valuation Projections
Leopold noted growing confidence in Nvidia’s CPU segment and long-term revenue potential. CPU revenue currently accounts for approximately 3% of the company's sales and is projected to reach about 5% by fiscal 2028. Raymond James anticipates that CPU growth will be the fastest-growing component of Nvidia’s business, potentially positioning the company as a market leader within several years.
The firm also forecasts that Nvidia’s sales and net income growth will exceed 20% in fiscal 2028. Leopold observed that Nvidia trades at less than 15 times fiscal 2027 GAAP earnings, which is below the S&P 500’s 18.6 times multiple, describing the discount as difficult to justify given the company's market leadership. To establish the new target, Raymond James applied a 22x multiple to its fiscal 2028 earnings estimate.
Broader Wall Street Sentiment and Upcoming Earnings
The upgrade aligns with broader Wall Street sentiment. TipRanks data from 29 analysts shows a unanimous 'Strong Buy' consensus rating for Nvidia, with an average stock forecast of $306.48, a high target of $425, and a low target of $250.
The updates precede Nvidia's fiscal second-quarter 2027 earnings release, scheduled for after the market closes on August 26. Analysts project approximately $92 billion in revenue and adjusted earnings of $2.09 per share. Key areas of focus for investors include third-quarter guidance, updates on the Blackwell rollout, gross margins near 75%, and developments regarding China shipments.
