Raymond James Raises $NVDA PT to $352 from $330 - Strong Buy Analyst comments: "NVIDIA has increased its visibility in CPUs even if they are not a new part of the story. However, CPUs represent a low-single-digit percent of NVIDIA’s sales — roughly 3% today. In the past, NVIDIA’s CPUs were tightly tied to its GPUs, but that should change, particularly with agentic use cases. While NVIDIA’s CPU revenue is becoming material within the CPU market, we expect it to reach approximately 5% of total revenue by CY28 in our model — still a single-digit portion, yet the growth is the fastest among the elements we model. We have extended our model through FY29/CY28 and refined our segment assumptions. Among the surprising conclusions from our market analysis is the prospect that NVIDIA could become the world leader in CPU revenue within several years. We have been disappointed with the stock’s year-to-date performance, with the shares up only 12%, largely matching the S&P 500 Index. The stock trades at a CY27 GAAP P/E of less than 15x, which is below the S&P 500’s 18.6x. The discount strikes us as fundamentally illogical considering that sales and net income growth still exceed 20% in our CY28 estimates. Typically, a company with sustainable growth, barriers to entry (e.g., CUDA, leading GPU performance), and healthy free cash flow trades at multiples above the overall market. Factors that may weigh on NVIDIA’s shares include a $5.2 trillion market cap that may limit further exposure, fear that the AI boom turns to a bust, decelerating growth, and peaking growth and margins. Our $352 price target, up from $330, is based on a 22x multiple applied to our new CY28 estimates. This represents a premium to the S&P 500’s ~19x CY27 multiple. Considering NVIDIA’s industry leadership and strong growth, the market premium is conservative. The median NTM P/E has been 35x over the past five years." Analyst: Simon Leopold