This AI Chip Stock Is “Poised for Breakout,” Says Top Analyst

FomoAnxiety · 2026-03-05T04:13:09+00:00

Nvidia is poised for a breakout according to Jefferies analyst Blayne Curtis, who cites strong AI demand and undervalued stock. Despite recent performance, market reaction remains muted, with Wall Street endorsing a Strong Buy rating.

FomoAnxiety

2026-03-05 04:13:09

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AI chip leader Nvidia (NVDA) could be ready for a breakout, according to top Jefferies analyst Blayne Curtis. Despite strong business performance, Nvidia has struggled to keep pace in the market. In a recent note, the 5-star analyst said the issue is not weak demand or execution but valuation.

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Curtis wrote, “We still fundamentally believe NVDA is poised for breakout as valuation is too depressed.” He added that the market may be overlooking how strong the AI demand cycle remains.

Nvidia’s AI Momentum Remains Strong

Nvidia’s latest results once again showed strong demand for its AI chips. Shipments of the new Blackwell platform are ramping up, and demand visibility now stretches well into 2027.

Jefferies also highlighted the company’s fast-growing sovereign AI business, where governments build their own AI systems. Revenue from this segment reached about $30 billion in 2025, more than three times higher than a year earlier.

Another key driver is networking. As AI systems become larger and more complex, the need for high-speed connections between chips keeps rising. Jefferies said Nvidia’s networking unit is now posting double-digit sequential growth, turning it into a second major growth driver.

Still, the market reaction has been muted. The analysts summed up the situation in simple terms: “The train keeps rolling and somehow stays cheap.”

Is NVDA a Strong Buy?

Overall, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 39 Buy, one Hold, and one Sell recommendations. The average NVDA stock price target of $271.89 indicates 48.54% upside potential.

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