Deutsche Bank analyst Ross Seymore reiterated a Hold rating and $255.00 price target on NVIDIA (NASDAQ: NVDA)

The analyst comments: “Over the last two evenings, NVDA's Jensen Huang hosted a keynote presentation and a follow-up analyst Q&A at Computex 2026. Similar to the company’s recent earnings call, this week’s events focused on NVDA's holistic approach to AI, with the newest strategic target area being CPUs to further the company’s leadership in GPUs. At its keynote, NVDA kicked off with an admittedly expected update on the Vera Rubin ramp (7 chips, the successor to the co's Grace Blackwell platform), which Mr. Huang announced is now in full production (increasing both the capacity and throughput of the system), and for which the company has ~2x the size of supply chain versus its Grace Blackwell ramp (given outsized AI demand).

Next, Mr. Huang dove into a deeper discussion on the optimization of the Vera CPU for the "age of agentic AI", continuing the narrative introduced on their last earnings call where he discussed the possibility of generating ~$20b in server CPU revenues in 2026 (albeit with no quantitative updates to that projection nor the oft-cited ~$200b CPU TAM by 2030). The Vera CPU is sold as part of the packaged Vera Rubin rack (inclusive of 2 CPUs) but can also be sold as a standalone CPU or as part of the Vera Bluefield system (within storage/security), and according to the company delivers 40% lower peak memory latency, 50% faster core-to-core communication and 1.8x the agentic performance of x86 CPUs.

Finally, Mr. Huang introduced NVDA's foray into the next-generation of AI PCs for the agentic era via their launch of the RTX Spark superchip in collaboration with Microsoft for their new line of Windows AI PCs. The RTX Spark is full of NVDA content, with the newly introduced “superchip” containing a Blackwell RTX GPU paired via NVLink with a 20 core Grace CPU (codesigned with MediaTek), custom built in collaboration with Microsoft to run on Windows. The RTX Spark will address desktops, laptops, and workstations, with the future roadmap matching that of NVDA’s Data Center products (i.e., Feynman will be next in ~2028). Finally, in the Q&A segment of the week, Mr. Huang announced that NVDA plans to return 50% of FCF over the long term (clarifying that the FY27 target extends into the future).”

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Shares of NVIDIA closed at $224.36 yesterday.