The game-changing $5 billion investment by semiconductor giant Nvidia (NVDA) in troubled chipmaker Intel (INTC) has drawn favorable reactions from many Wall Street analysts. On Friday, William Blair analyst Sebastien Naji reiterated a Buy rating on Nvidia stock and stated that he views the Nvidia-Intel partnership as a “win” for both companies. He believes that the deal, which will integrate Intel’s CPU (central processing unit) into Nvidia’s NVL72 racks using NVLink, provides Nvidia “incremental revenue opportunities” in an already solid demand backdrop for NVL72 racks.
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William Blair Is Positive on Nvidia-Intel Partnership
Naji noted that with the deal, Intel will gain a new customer in the data center market and funding to pursue its foundry goals. Meanwhile, Nvidia will expand into the large x86 ecosystem while also enhancing its potential footprint in the integrated GPU PC market.
Furthermore, the 4-star analyst stated that the partnership boosts Nvidia’s total addressable market (TAM) by roughly $50 billion, according to CEO Jensen Huang, increasing the pressure on rival Advanced Micro Devices (AMD). IDC’s projection of about 220 million AI PC shipments in 2028 using the x86 architecture indicates a massive incremental TAM opportunity for Nvidia.
Overall, Naji is optimistic about the Nvidia-Intel deal, as it provides Nvidia with topline growth opportunities. The analyst noted that NVDA stock is trading at a P/E multiple of 28x calendar 2026 earnings estimates. He expects the company to sustain robust growth, backed by continued hyperscaler spending and accelerating momentum from neocloud, sovereign, and enterprise customers.
“We remain constructive on shares as Nvidia maintains its competitive edge and continues to benefit from robust momentum for AI infrastructure,” said Naji.
Is NVDA Stock a Strong Buy?
Like Naji, most analysts are bullish on Nvidia’s growth prospects. Wall Street has a Strong Buy consensus rating on Nvidia stock based on 36 Buys, two Holds, and one Sell recommendation. The average NVDA stock price target of $211.47 indicates 20.2% upside potential. NVDA stock has risen 31% year-to-date.
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