Where is NVIDIA Corporation (NVDA) Headed According to the Street?

NVIDIA Corporation (NASDAQ:NVDA) is one of the best strong buy growth stocks to buy according to hedge funds. NVIDIA Corporation (NASDAQ:NVDA) received a rating update from Jefferies on January 16, with the firm lifting the price target on the stock to $275 from $250 and maintaining a Buy rating on the shares. The firm told investors that NVIDIA Corporation (NASDAQ:NVDA) “remains pretty cheap,” trading at mid-teens multiple to its bottom-up implied calendar year 2027 estimate. In another development, J.P. Morgan reiterated a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) on January 13, without assigning a price target.

The rating update came the same day NVIDIA Corporation (NASDAQ:NVDA) and Eli Lilly reported that they are putting together “a blueprint for what is possible in the future of drug discovery,” announced by NVIDIA Corporation (NASDAQ:NVDA) founder and CEO Jensen Huang at a fireside chat with Dave Ricks, chair and CEO of Lilly, on Monday at the annual J.P. Morgan Healthcare Conference in San Francisco. The announcement was focused on the joint development of a first-of-its-kind AI co-innovation lab by NVIDIA Corporation (NASDAQ:NVDA) and Lilly.

Management further reported that the initiative would amalgamate NVIDIA Corporation’s (NASDAQ:NVDA) leadership in AI with Lilly’s expertise in the pharmaceutical industry to take on one of the greatest challenges faced by humanity: modeling the complexities of biology. The two companies would support the lab by jointly investing up to $1 billion in infrastructure, talent, and compute over five years. The co-innovation lab will be based in the San Francisco Bay Area.

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.