Stifel has reaffirmed its Buy rating on Nvidia Corp. and left its price objective at $250.00 after the company disclosed an expanded collaboration with Meta to advance on-premises, cloud and AI infrastructure. That price target sits alongside prevailing analyst optimism for the $4.49 trillion semiconductor firm, which trades at a price-to-earnings ratio of 46.01, according to InvestingPro data.
The companies described the arrangement as a multi-year, multi-generational partnership that expands prior work between the two firms. As part of the agreement, Meta will make large-scale deployments of Nvidia’s CPUs, GPUs and the Spectrum-X Ethernet networking platform. Nvidia has noted that such strategic alliances have been an important contributor to its growth, with revenue up 65.22% over the trailing twelve months and total revenue reaching $187.14 billion.
Meta will integrate Nvidia’s rack-scale Confidential Computing as a core component of its forthcoming Vera Rubin platform. The collaboration is also notable for representing the first large-scale deployment focused exclusively on Nvidia’s Grace CPUs. Nvidia and Meta said they plan to support that deployment through infrastructure co-design and targeted software optimization investments.
The partnership further validates Nvidia’s Spectrum-X networking technology, and Nvidia’s Confidential Computing is expected to be used initially for private processing associated with WhatsApp. Both companies anticipate the Confidential Computing capability will extend to additional, emerging use cases over time.
In its analysis, Stifel expects hyperscale cloud operators to keep investing in their own internal silicon initiatives as well as complementary networking projects, and highlighted potential work with vendors such as Celestica (NYSE:CLS) and Arista Networks. The firm projects Nvidia will remain competitive through a full-stack architecture strategy.
Other recent developments cited alongside the Meta news include Nvidia’s plan to invest more than NT$40 billion to set up its first overseas headquarters in Taiwan, a step that was confirmed in a report referencing Taipei city mayor Chiang Wan-an. Several sell-side analysts have also updated their views: UBS raised its price target on Nvidia to $245 while maintaining a Buy rating, and the firm expects Nvidia’s fiscal fourth-quarter revenue to land near $67.5 billion, which would top the company’s guidance by roughly $2.5 billion.
The company’s most recent 13F filing was noted as well: Nvidia removed its stake in Applied Digital, a change that also affected holdings in Arm Holdings and WeRide Inc., which had previously appeared in Nvidia’s portfolio. Separately, European-focused data center startup Nscale secured a $1.4 billion loan from lenders including Pimco and Blue Owl Capital to finance chip purchases for leasing to customers in Europe.
Finally, U.S. Representative Ro Khanna signaled a willingness to permit sales of older Nvidia "Hopper" chips to China, indicating a potential easing in the policy stance on certain technology exports.
Clear summary
Stifel reiterated Buy and a $250.00 price target on Nvidia after the company expanded its long-term infrastructure partnership with Meta. The deal covers rack-scale Confidential Computing for Meta’s Vera Rubin platform, the first large-scale Grace CPU-only deployment, and broad adoption of Nvidia GPUs, CPUs and Spectrum-X networking. The announcement accompanies other corporate developments, including a major investment in a Taiwan headquarters, UBS raising its target to $245, and portfolio changes disclosed in Nvidia’s 13F filing.
Key points
- Stifel maintained a Buy rating and $250.00 price target on Nvidia following its expanded partnership with Meta.
- The Meta agreement involves large-scale deployment of Nvidia CPUs, GPUs and Spectrum-X Ethernet networking and integrates Nvidia Confidential Computing into Meta’s Vera Rubin platform.
- Analysts including UBS have revised targets upward, and Nvidia reported significant revenue growth - up 65.22% year-over-year to $187.14 billion.
Sectors impacted
- Semiconductors and AI infrastructure
- Data center hardware and networking
- Cloud services and hyperscale computing
Risks and uncertainties
- Execution risk - scaling the first large-scale Grace CPU-only deployment will require successful infrastructure co-design and software optimization investments, which affects data center operators and cloud infrastructure vendors.
- Portfolio reallocation - Nvidia’s 13F filing removed stakes in companies such as Applied Digital, Arm Holdings and WeRide Inc., illustrating potential shifts in investment strategy that could influence smaller technology and infrastructure firms.
- Policy and export controls - comments regarding potential sales of older Hopper chips to China signal changing policy debates that could affect international sales and supply chains for semiconductors.
This report presents the recent analyst actions and corporate developments surrounding Nvidia and highlights the strategic elements of its expanded Meta partnership along with related market and portfolio movements.