Oppenheimer Sets $265 Target Citing Blackwell Chips’ Two-Cycle Lead
Oppenheimer analyst Rick Schafer named Nvidia its top pick and set a $265 price target, citing Blackwell Ultra racks that keep the company roughly two product cycles ahead of AMD and Intel. He highlighted Nvidia’s performance-per-watt advantage, robust software and networking ecosystem, and noting the stock trades at about 17 times its 2027 earnings forecast versus a sector average of 20 times.
1. Oppenheimer Names Nvidia Top Pick
Analyst Rick Schafer elevated Nvidia to his top pick and established a $265 price target, asserting that Blackwell Ultra rack systems maintain a significant technology edge. He argued this lead spans approximately two product cycles, reinforcing Nvidia’s ability to outpace competitors in the AI server market.
2. Valuation and Ecosystem Advantages
Schafer pointed to Nvidia’s performance-per-watt efficiency and the depth of its software and networking ecosystem as key customer lock-in factors. He also noted that Nvidia trades at around 17 times its 2027 earnings estimate, below the broader semiconductor sector’s 20-times average, suggesting further upside potential.