NVIDIA Corporation received a price target increase from Jefferies on January 16. The firm raised the target to $275 from $250 and maintained a Buy rating. Jefferies told investors the stock "remains pretty cheap," trading at mid-teens multiple to its bottom-up implied calendar year 2027 estimate. J.P. Morgan had reiterated a Buy rating on NVIDIA on January 13.
On the same day, NVIDIA and Eli Lilly announced a partnership. The announcement was made by NVIDIA founder and CEO Jensen Huang during a fireside chat with Lilly chair and CEO Dave Ricks. This occurred on Monday at the annual J.P. Morgan Healthcare Conference in San Francisco.
The companies stated they are creating a blueprint for the future of drug discovery. The focus is on the joint development of a first-of-its-kind AI co-innovation lab.
Management reported the initiative combines NVIDIA's leadership in AI with Lilly's pharmaceutical expertise. The goal is to address the challenge of modeling the complexities of biology. The two companies will jointly invest up to $1 billion over five years. This investment covers infrastructure, talent, and compute. The co-innovation lab will be based in the San Francisco Bay Area.
NVIDIA Corporation designs and manufactures computer graphics processors, chipsets, and other multimedia software. It operates in the Compute & Networking and Graphics Processing Unit segments.