• KeyBanc raises Nvidia's price target from $230 to $250, maintaining Overweight rating
  • Analyst cites improved CoWoS supply outlook and upgraded VR200 NVL144 chip specifications
  • Company expects 90% year-on-year increase in CoWoS interposers for 2025

KeyBanc Capital Markets analyst John Vinh boosted his price target on Nvidia Corporation (NVDA) to $250 from $230, reaffirming his Overweight rating on the semiconductor giant. The upward revision comes amid expectations of strengthening supply chain dynamics and technological enhancements that should help Nvidia maintain its competitive edge in the artificial intelligence hardware space.

Vinh specifically pointed to improved CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging capacity as a key driver, with Nvidia now anticipating 370,000 CoWoS interposers in 2025—representing a 90% year-over-year increase—followed by 530,000 units in 2026, according to people familiar with the company's projections. This expanded packaging capacity is critical for meeting soaring demand for Nvidia's AI accelerators.

The analyst also noted better rack manufacturing yields and upgraded specifications for Nvidia's forthcoming VR200 NVL144 chip, which is expected to help the company maintain its technological leadership against Advanced Micro Devices' upcoming MI400 architecture. These improvements come as Nvidia's rack shipments remain on track for approximately 30,000 units this year, with expectations of at least 50,000 units in 2026.

Nvidia shares traded up 2.3% in premarket activity following the analyst note, continuing their strong performance amid what one market strategist described as "unabated demand for AI infrastructure." The company's data center segment, which accounted for the majority of its $60.9 billion in revenue last fiscal year, continues to benefit from enterprise and cloud provider investments in generative AI capabilities.

Efforts to reach Nvidia representatives for additional comment on the supply chain improvements were unsuccessful ahead of market open. However, industry sources indicate that the company's relationships with key manufacturing partners, including Taiwan Semiconductor Manufacturing Company, have been crucial in addressing previous CoWoS capacity constraints that had limited GPU output throughout much of 2024.

The raised price target places KeyBanc among the more bullish analysts covering Nvidia, with the $250 target representing approximately 15% upside from current trading levels. Other firms including Loop Capital have similarly optimistic targets, while the broader analyst consensus remains strongly positive on Nvidia's ability to capitalize on the AI infrastructure build-out.

As competition in the AI accelerator market intensifies, Nvidia's continued supply chain improvements and product enhancements appear to be reinforcing its dominant market position, at least in the near to medium term. The company's next quarterly earnings report, expected in late November, will provide further insight into whether current demand trends are sustaining.