A.I. investments will keep Nvidia ahead of its semiconductor rivals, Stifel says

Stifel thinks Nvidia is the premier player that stands to benefit the most from artificial intelligence hype. The firm reiterated a hold rating on Nvidia stock on Monday, albeit with a renewed price target of $300 per share, up from $225. Stifel’s new price target is 3.7% lower than Nvidia’s Monday close of $311.76 per share. Nvidia has been on a tear this year with an 113% gain. Investor excitement over the explosion of AI thanks to the success of ChatGPT seemingly lifted Nvidia to the forefront. NVDA YTD mountain Nvidia stock. “NVDA remains the best-positioned component/ systems company to benefit from the AI investment cycle in the medium term, in our view,” Stifel analyst Ruben Roy said. The firm is also raising its forward guidance estimates. Roy posits revenue will grow to $37.8 billion for the full-year in 2025 while earnings climb to $6.18 per share. “Our new revenue estimate, which now implies 26% y/y growth, up from 18% previously, is predicated on a higher Data Center segment growth assumption, which is now +41% y/y versus our prior estimate of +25%,” Roy said. For the full year in 2026, revenue and earnings will climb to $45.5 billion and $7.65 per share, respectively, Roy said. Nvidia is set to report quarterly results on Wednesday. The Stifel call comes a day after KeyBanc reiterated Nvidia as a buy. — CNBC’s Michael Bloom contributed to this report.