Jefferies Remains Bullish on NVIDIA Corporation (NVDA)

NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to buy in 2026 for beginners. On January 16, Jefferies lifted the price target on NVIDIA Corporation (NASDAQ:NVDA) to $275 from $250 and reiterated a Buy rating, telling investors that the stock “remains pretty cheap”, trading at mid-teens multiple to its bottom-up implied calendar year 2027 estimate.

Separately, J.P. Morgan reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) without assigning a price target on January 13. The firm highlighted the $1 billion co-innovation partnership with Eli Lilly, along with the broader shift in pharma towards AI “factories”, stating that they support the view that NVIDIA Corporation’s (NASDAQ:NVDA) GPU infrastructure is becoming pivotal to modern drug discovery and is supporting durable demand, which is a notable factor supporting a positive long-term outlook on the stock.

The firm also cited the company’s expanding strategic role in life sciences and healthcare, and highlighted its full-stack approach as a significant operating leverage driver. This spans AI “factories”, chips, software frameworks, and domain-specific models, primarily because the same core platforms are reusable across several verticals and applications.

J.P. Morgan further stated that NVIDIA Corporation’s (NASDAQ:NVDA) robotics, integrated simulation, and edge-compute stack is allowing the automation of laboratories in healthcare, potentially slashing costs by orders of magnitude and boosting throughput. The same day, Wells Fargo also reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) and set a $265 price target.

NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit (GPU) segments.

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.