Nvidia (NVDA) just got a fresh vote of confidence from Wall Street. Notably, a top-rated analyst Thomas O’Malley at Barclays has raised his price target on the AI chip giant from $170 to $200, maintaining a Buy rating. With NVDA shares already on a powerful run in 2025, the new target suggests there could still be plenty of upside ahead.
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Here’s Why Barclays Turns More Bullish on Nvidia
Barclays’ new price target implies a potential upside of 38% from current levels, significantly higher than the Wall Street average of 19%. The price target increase is largely based on strong supply chain demand, suggesting a potential upside in the second half of the year.
After reviewing Nvidia’s supply chain post-Q1 earnings, Barclays spotted around $2 billion in potential upside for July compared to Wall Street expectations. As a result, the firm raised its full-year Compute revenue forecast to $37 billion, up from $35.6 billion. For context, compute revenue forecast estimates how much a company expects to earn from its computing products or services over a time period.
Barclays also noted that Nvidia’s new Blackwell chips hit 30,000 wafers per month in June, which is below its earlier estimate of 40,000. However, the firm noted that factory usage remains strong, and the overall tone of the supply chain is optimistic for the second half of the year. That gives Barclays more confidence in Nvidia’s performance for October.
Furthermore, analysts at Barclays highlighted that system sales are gaining momentum and are expected to make up around 25% of revenue in July and around 50% by October.
What Is the 12-month Price Target for Nvidia?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell assigned in the last three months. At $172.36, the Nvidia share price target implies a 19% upside potential.