Truist Raises NVIDIA (NVDA) PT After Nemotron 3 AI Model Launch

NVIDIA Corporation (NASDAQ:NVDA) is one of the must-buy AI stocks to invest in. On December 19, Truist raised the price target on NVIDIA Corporation (NASDAQ:NVDA) stock from $255 to $275, and maintained a Buy rating on the shares. The adjustment came after the firm reviewed the entire semiconductor and AI sector, after which it built fresh financial models that now extend all the way to 2027 estimates.

The firm acknowledged real-world hurdles in the AI boom, noting the difficulties of finding the power to run AI infrastructure and getting the funding to pay for it. Yet, even with these challenges, Truist sees bright prospects ahead. They believe AI infrastructure semiconductor stocks “remain cheap” relative to their growth. Looking into the near future, the analysts expect “more upside pressure” to estimates for the group relative to the diversified analog semis heading into 2026.

In a different update, on December 15, NVIDIA launched its Nemotron 3 family of open models. The family includes three models in different sizes: Nano (30 billion parameters, with about 3 billion active), Super (around 100 billion parameters), and Ultra (around 500 billion parameters). These allow developers to select a model that fits their needs, stated the company.

According to NVIDIA, the key innovation with this model family is the hybrid mixture-of-experts architecture. The architecture combines Mamba and Transformer technologies, which boosts efficiency. For example, Nemotron 3 Nano delivers 4x higher throughput compared to the previous Nemotron 2 Nano. As such, the updated model produces more tokens per second in multi-agent setups.

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company. It designs GPUs and data center solutions, which are widely used for training and running large-scale AI models. NVIDIA’s CUDA software platform and AI-focused hardware provide the computational power required for generative AI, machine learning, and high-performance computing applications.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.