TLDR
- Jefferies lifted NVIDIA’s price target from $250 to $275 while keeping a Buy rating
- Analysts say the stock remains cheap at mid-teens multiple versus 2027 earnings estimates
- NVIDIA and Eli Lilly will jointly invest up to $1 billion in an AI drug discovery lab
- The five-year partnership combines AI technology with pharmaceutical research expertise
- J.P. Morgan reiterated its Buy rating on NVIDIA shares January 13
Jefferies upgraded its NVIDIA price target to $275 from $250 this week. The firm maintained its Buy rating on the stock.
The January 16 update reflected changes to the bank’s accelerator builds model. Analysts extended their projections through 2028.
Jefferies described NVIDIA as trading at attractive levels. The stock sits at mid-teens multiple relative to the firm’s 2027 earnings calculations.
Analysts see room for growth beyond 2027. They anticipate material earnings beats with estimates trending higher across multiple quarters.
J.P. Morgan also supported the stock with a Buy rating January 13. The bank opted not to assign a specific price target.
Healthcare Partnership Targets Drug Development
NVIDIA unveiled a collaboration with Eli Lilly on the same day as the Jefferies upgrade. The companies will build an AI co-innovation lab for pharmaceutical research.
Jensen Huang announced the venture at the J.P. Morgan Healthcare Conference in San Francisco. The NVIDIA founder appeared alongside Lilly CEO Dave Ricks.
Both firms will contribute up to $1 billion over five years. The investment covers infrastructure, computing resources, and staffing.
The lab will be based in the San Francisco Bay Area. Executives framed the project as a new model for drug discovery.
Technology Meets Pharmaceutical Science
The partnership addresses complex biological modeling challenges. NVIDIA brings AI capabilities while Lilly offers pharmaceutical industry knowledge.
Leadership teams called it a response to major scientific hurdles. The initiative focuses on understanding complicated biological systems.
Jefferies projected NVIDIA’s estimate revisions will be less dramatic than Broadcom’s. The firm ranks Broadcom as its top semiconductor choice.
Jefferies models Broadcom’s 2028 earnings per share above $19. Conservative projections for OpenAI and Meta suggest $25 EPS possibilities.
NVIDIA generates revenue through two primary segments. The Compute & Networking division works alongside the Graphics Processing Unit business.
The stock holds a Strong Buy consensus rating of 1.34 from Wall Street analysts. Revenue climbed 65.22% over the past twelve months to $187.14 billion.
NVIDIA currently trades at a P/E ratio of 46.58. The PEG ratio of 0.77 indicates reasonable pricing compared to growth expectations.
Analysts highlighted continued upside potential for shares. The extended 2028 model provides longer-term visibility.
The Lilly deal creates new healthcare AI opportunities. Pharmaceutical applications for AI technology continue expanding across the industry.
