Barclays announced an increased price target for Nvidia (NASDAQ: NVDA), raising it to $200 from the previous $170. This updated target reflects growing confidence in Nvidia’s performance, driven by anticipated supply chain demand and momentum in the AI sector for the latter half of 2025.

This update signifies a potential 38 percent upside from Nvidia’s June 16 closing price of $144.69.

Supply Chain Insights Boosting Forecasts

Following strong first-quarter results, Barclays’ supply chain evaluation reveals an anticipated $2 billion revenue boost in July, surpassing consensus estimates. As a result, the bank has raised its full-year Compute segment revenue forecast to $37 billion, increasing from the earlier forecast of $35.6 billion.

Despite Blackwell chip production standing at only 30,000 wafers per month—falling short of Barclays’ prior estimate of 40,000—the firm noted that overall utilization remains strong, and expectations for the second half are on the upswing.

• Blackwell Ultra: Set to attain mass production by Q3.
• System sales: Expected to account for 25 percent of July revenues, projected to increase to 50 percent by October.
• Improving Gross Margins: Due to scale and a shift in product mix.

Get Insights into Nvidia’s Valuation Outlook:

• Keep track of updated analyst targets and projected EPS to understand Nvidia’s market positioning.
• Analyze revenue breakdown by chip categories and software applications to gauge growth areas.

Investment Outlook

The raised target reflects a 29x multiple applied to Nvidia’s 2026 non-GAAP EPS estimate of $6.86, up from $6.43. This increase in forecast shows Barclays’ confidence in Nvidia’s sustained dominance in the AI and compute infrastructure sectors, despite encountering short-term supply issues.

As demand rises for both Blackwell systems and AI data center infrastructure, Nvidia’s continued growth narrative remains positive, with significant upside potential expected in upcoming quarters.