Nvidia’s dominance in artificial intelligence computing shows no signs of easing, with BNP Paribas raising its price target on the chipmaker to $345 from $285 while keeping an Outperform rating. The new target implies roughly 47% upside from Friday’s close and rests on a thesis that the company’s full-stack platform, not just its individual chips, will keep rivals at bay as AI workloads grow more complex.<\/p>\n
The brokerage’s call arrives at a moment when Wall Street is openly debating whether major technology companies building custom silicon will erode Nvidia’s grip on the AI compute market. BNP Paribas argues the opposite: the shift from AI training to inference, where models must reason through multi-step tasks and handle longer contexts, plays directly to Nvidia’s strengths. Memory bandwidth, networking speed, and the ability to move data across entire rack-scale systems now matter as much as raw floating-point performance, and that is precisely where an integrated platform outperforms a collection of discrete accelerators.<\/p>\n
The bank expects Nvidia to retain at least three-fourths of the AI compute market in dollar terms even as AMD and custom chips from cloud providers gain share. It also projects gross margins will stay above 70% despite intensifying competition. The $345 target is derived from a valuation framework applying 15 times calendar 2028 earnings plus cash.<\/p>\n
Central to the thesis is the upcoming Vera Rubin platform, which combines GPUs, CPUs, networking, and other components into an integrated rack-scale system designed specifically for agentic AI. BNP Paribas views the platform as evidence that Nvidia is adapting to the next stage of AI, where software ecosystems and interconnect architecture become decisive. The combination of the CUDA software stack and NVLink hardware fabric, the bank contends, gives Nvidia an advantage that individual chip competitors will struggle to replicate.<\/p>\n
Networking is emerging as a critical differentiator. As AI systems scale beyond single GPUs into larger clusters, the ability to connect and move data between those systems becomes a gating factor for performance. BNP Paribas expects Nvidia’s networking business to become a major competitive moat as these architectures expand.<\/p>\n
The bullish note follows a series of aggressive capital-return moves by the company. Nvidia recently expanded its buyback authorization by $150 billion, bringing the total program to $235 billion and eclipsing Apple’s $110 billion increase in 2024 as the largest-ever expansion of a repurchase plan. The company expects to execute the remaining authorization through fiscal 2028. During the first half of fiscal 2027, Nvidia spent $40 billion on buybacks, including $20 billion in the most recent quarter alone.<\/p>\n
Chief Executive Jensen Huang framed the buyback expansion as a signal of the company’s “confidence in the long-term opportunity ahead.” The repurchases are easily funded: free cash flow surged 77% year over year to nearly $70 billion in the first half of fiscal 2027, and analysts expect that figure to nearly double to $190 billion for the full year.<\/p>\n
The company’s financial momentum remains extraordinary. In its most recent quarter, revenue more than doubled to $96.2 billion, with adjusted earnings of $2.22 per share. Data center revenue climbed 117% from a year earlier to $89 billion, while edge-computing revenue rose 27% to $7.2 billion. Nvidia generated more than $215 billion in annual revenue last fiscal year, and analysts forecast that will climb above $411 billion in the current one.<\/p>\n
Nvidia’s valuation underscores why bulls remain comfortable buying near record highs. The stock trades at roughly 15 times forward earnings, a multiple that looks undemanding against consensus expectations for revenue and earnings per share to grow at compound annual rates of 61% from fiscal 2026 through fiscal 2029. The company’s market capitalization now stands near $5.65 trillion, making it the world’s most valuable company after last year becoming the first to cross the $4 trillion threshold. The stock set an all-time high of $237 last week and is on track for a roughly 25% gain this year.<\/p>\n
Beyond the core GPU business, Nvidia is pushing into the stand-alone CPU market, where its first product is rolling out now and is expected to generate about $20 billion in revenue this year. CPUs are seen as playing a major role in agentic AI, and the company’s early entry positions it to capture demand as AI agents begin handling real-world tasks on behalf of users.<\/p>\n
Nvidia also disclosed a new Open Agent Safety Platform, which combines its OpenShell and Sentry technologies to create an independent layer for monitoring, policy enforcement, and security around AI agents. The platform places controls outside the AI model itself, addressing growing concerns about agent safety as autonomous systems take on more responsibilities.<\/p>\n
Still, risks remain. Competition from cheaper rivals and custom AI chipmakers continues to intensify, and any slowdown in AI infrastructure spending or broader macroeconomic weakness could pressure the stock. A full buyback authorization of $235 billion, while enormous in absolute terms, equals only about 4% of Nvidia’s current market capitalization, limiting its direct impact on the share price.<\/p>\n
For long-term investors, the debate comes down to whether Nvidia’s platform advantage can endure as the AI market matures. BNP Paribas is betting it will, and the company’s track record of timing buybacks during periods of perceived undervaluation suggests management shares that conviction. Nvidia has reduced its share count by about 24% over the past two decades while the stock price surged more than 40,000%, a record of capital allocation that few technology companies can match.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia’s dominance in artificial intelligence computing shows no signs of easing, with BNP Paribas raising its price target…\n","protected":false},"author":2,"featured_media":89491,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12875],"tags":[35843,20476,12883,14951,1143,574,52344,52345,52346,52347,52343],"class_list":["post-89490","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bnp-paribas","tag-amd","tag-apple","tag-bnp-paribas","tag-cuda","tag-jensen-huang","tag-nvidia","tag-nvlink","tag-open-agent-safety-platform","tag-openshell","tag-sentry","tag-vera-rubin"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/89490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=89490"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/89490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/89491"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=89490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=89490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=89490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}