BNP Paribas has significantly raised its target price for Nvidia to $345 from $285 while maintaining an 'Outperform' rating on the US chipmaker. According to reports from BNP Paribas, the revised target price is based on Nvidia's October 2 closing price of around $234, indicating a potential upside of nearly 47% for investors. The brokerage's valuation framework uses 15 times CY28 earnings, plus cash, to arrive at the $345 target price.
The brokerage highlighted Nvidia's expanding advantage across the artificial intelligence infrastructure stack as a key driver for the price target increase. As reported by BNP Paribas, the company's strength is no longer limited to AI training chips, with the industry increasingly shifting towards more complex inference workloads. The brokerage believes Nvidia's integrated offering of GPUs, CPUs, networking and software could help it defend its leadership even as competition intensifies. BNP Paribas argues that Nvidia's combination of its CUDA software ecosystem and NVLink hardware architecture could give it an advantage over individual chip competitors.
BNP Paribas sees Nvidia's upcoming Vera Rubin platform as evidence that the company is adapting to the next stage of AI development. The platform brings together GPUs, CPUs, networking and other components into an integrated rack-scale system designed for agentic AI, where models have to reason through multi-step tasks, call tools and handle longer contexts. These workloads require more than raw computing power, making memory, networking and the ability to move information quickly across the system increasingly important. The brokerage also expects Nvidia's networking business to become a major differentiator as AI systems scale beyond individual GPUs into larger racks, with the company maintaining gross margins above 70% despite intensifying competition.
BNP Paribas sees Nvidia's full-stack AI platform helping the chipmaker defend its market leadership as inference workloads become more complex. According to the brokerage's analysis, the company's comprehensive approach to AI infrastructure, combining hardware and software solutions, positions it well to maintain its competitive advantage despite evolving market dynamics and increasing competition in the artificial intelligence sector. The brokerage expects Nvidia to retain at least 75% of the AI compute market by dollar value, even as AMD and custom accelerators from major technology companies gain ground. BNP Paribas also sees opportunities for Nvidia beyond GPUs, particularly in server CPUs and networking, with the networking business becoming increasingly important as AI infrastructure expands into larger, interconnected systems.
