nvidia gains momentum: jefferies adds chip giant to 'franchise picks'

2025-06-03 nvidia

new york, Tuesday, 3 June 2025.
nvidia’s stock is up today. jefferies added nvidia to its ‘franchise picks’, a list of highest-conviction stocks. this reflects confidence in nvidia’s dominance in ai and data centers. jefferies forecasts nvidia’s gross margins could surge from 61% to 80% due to demand for blackwell chips. analysts cite strong ai commitments from saudi arabia and the uae as reasons for optimism, offsetting concerns about sales in china.

analyst optimism fuels nvidia’s rise

Nvidia’s stock performance reflects positive analyst sentiment and growth expectations [2]. Jefferies’ addition of Nvidia to its ‘Franchise Picks’ signals strong confidence in the chipmaker’s potential [5]. The firm’s analysts highlight Nvidia’s dominant position as a supplier of AI accelerators for data centers [5]. This endorsement suggests a belief in Nvidia’s ability to outperform the market, driven by differentiated analysis and identifiable catalysts [6]. Other analysts have also issued ‘Buy’ ratings, reinforcing the positive outlook for Nvidia [2].

blackwell chip ramp driving margin expansion

Jefferies anticipates Nvidia’s gross margins could reach the mid-70% range in 2025, fueled by the ramp-up of Blackwell Ultra chips and robust networking revenue [6]. Another analyst projects margins could potentially skyrocket to 80% this year as Blackwell volumes accelerate [7]. This margin expansion is attributed to Nvidia’s evolution into a comprehensive AI infrastructure provider, offering combined hardware, software, and systems [7]. Continuous software licensing and large-scale deployments are expected to further bolster profitability as AI workloads increase [7].

market performance and financial metrics

On June 2, 2025, Nvidia’s stock increased by 1.67%, closing at $137.38 after opening at $135.13 [3]. The stock experienced fluctuations of 1.99% during the day, with a low of $135.42 and a high of $138.11 [3]. Trading volume amounted to 195 million shares, valued at approximately $26.74 billion [3]. Over the past two weeks, the stock has gained 1.46% [3]. Despite a sell signal issued on May 29, 2025, analysts forecast a potential rise of 17.79% in the next three months [3].

strategic initiatives and market dynamics

Nvidia is strategically positioned to capitalize on increasing AI commitments from Saudi Arabia and the UAE [5]. These partnerships are expected to offset potential revenue losses from U.S. export restrictions impacting sales in China [5]. Nvidia’s focus on providing complete AI infrastructure, including hardware, software, and systems, strengthens its competitive advantage [1][7]. This comprehensive approach caters to a diverse clientele, ranging from hyperscale data centers to hedge funds, solidifying Nvidia’s market leadership [7].

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nvidia stock performance