Many analysts have yet to update their Nvidia Corp. price targets to account for the stock's strong rally over the past month, but Rosenblatt Securities analyst Hans Mosesmann just did so in a bold way.
He lifted his price target on Nvidia's stock $(NVDA)$ to $200 from $140, with the new target implying more than 50% upside from Monday's close of $130.98. Nvidia shares are rising fractionally in Tuesday's premarket action.
Nvidia shares rose 1.92% in morning trading on Tuesday.
With the target boost, Mosesmann is now the most-bullish analyst tracked by FactSet, as measured by his price target.
"We see Nvidia's Hopper, Blackwell, and Rubin series driving 'value' market share in one of Silicon Valley's most successful silicon/platform product cycles," Mosesmann wrote in a note to clients.
Nvidia these days is best known for its graphics processing units that help power the artificial-intelligence revolution, but Mosesmann is encouraged by the company's potential increasingly to tie software into the equation.
Though there are certainly compelling opportunities for Nvidia areas like switching, Mosesmann said "the real narrative lies in the software that complements all the hardware goodness."
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"We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability."
He thinks Nvidia will be able to top $5 in earnings per share in calendar 2026, and his new price target is based on a multiple of 40 times price to EPS. The FactSet consensus is for $4.16 in adjusted EPS for calendar 2026.
Nvidia shares are up 42% over the past month, and they're up 164% so far this year.
The stock's performance has been a major driver of the S&P 500's SPX ascent this year, as Citi Research strategist Scott Chronert highlighted late Monday. "The 14.6% [year-to-date] index return can be broken into three components," he wrote: Nvidia (4.1%), the rest of the Magnificent Seven (5.1%) and the "other 493" companies in the index (5.4%).
In terms of earnings growth, the company also "is in the driver seat and alone is responsible for $4.20 of the $22.40 S&P 500 EPS growth," he added.
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