NVIDIA Holds $300 Target as LPX Systems Cover 25% of AI Workloads
Bank of America and Baird affirmed $300 targets on NVIDIA, citing LPX systems addressing 25% of AI workloads and a $1 trillion 2025–27 data center outlook. Analysts forecast over 50% revenue growth into 2028 from $1 trillion Blackwell and Rubin orders, H2 2026 Vera Rubin platform launch and $6 per million token cost.
1. Analyst Ratings and Targets
Analysts at Bank of America and Baird reaffirmed their views on NVIDIA, both setting a $300 price target. Bank of America maintained its Buy rating based on improved tokenomics and high-margin LPX opportunities, while Baird kept its Outperform stance due to sustained AI compute demand.
2. LPX Systems Opportunity
NVIDIA’s new SRAM-based LPX systems target approximately 25% of ultra-low-latency AI workloads, offering higher profit potential for these tiers. Enhanced AI token efficiency has driven costs down to about $6 per million tokens, bolstering long-term gross margins across hyperscaler and non-hyperscaler segments.
3. Data Center Growth Outlook
The data center division is projected to exceed $1 trillion in sales from 2025 to 2027, with LPX and CPU additions potentially expanding the addressable market by 50%. Cumulative Blackwell and Rubin purchase orders top $1 trillion for 2025–2027, implying over 50% revenue growth into 2028, while the Vera Rubin platform enters full production with partner availability in H2 2026.