Jefferies Maintains Bullish Stance on NVIDIA Amid Strong AI Demand

Jefferies has maintained its 'Buy' rating on NVIDIA Corporation (NVDA), reinforcing the stock's position as a cornerstone of the AI-driven technology rally. The investment bank highlighted NVDA's expanding market share in data center GPUs, which now account for over 90% of its revenue, driven by growing adoption across cloud providers and enterprise AI deployments. The firm's analysis reflects NVDA's Q4 2025 revenue of $39.3 billion, a 208% year-over-year increase, with gross margins exceeding 78%. These figures underscore the company's pricing power and operational efficiency amid rising demand for high-performance computing infrastructure. Jefferies projects NVDA's revenue to surpass $75 billion in fiscal 2026, driven by next-generation Blackwell architecture and expanded partnerships with major cloud platforms. The market responded positively, with NVDA's shares rising 3.2% in after-hours trading following the report. Institutional investors and ETFs with significant AI exposure have increased their allocations to NVDA, with the stock now representing over 6% of the S&P 500 Information Technology sector. This momentum is expected to continue as global enterprises accelerate AI integration across industries including healthcare, finance, and autonomous systems. Jefferies' continued endorsement adds credibility to NVDA's long-term growth narrative, particularly as competition from AMD and custom silicon developers intensifies. Nonetheless, the firm believes NVDA's ecosystem advantages—spanning software stack, developer community, and API compatibility—create a durable moat.