Nvidia (NVDA) shares have come under pressure this week, slipping from a month-to-date high of $227 to the current $208, and the retreat now faces a key test: the company is scheduled to publish its earnings report on Wednesday, just as Raymond James raises its price target on the stock.

Raymond James Boosts Nvidia Stock Target to $352

Top analysts following Nvidia have remained highly bullish on the company, and Raymond James is the latest to lift its numbers. In a note, the firm's analysts raised their Nvidia price target to $352 from the previous $330 — about 67% above the current level. Raymond James, a firm valued at roughly $40 billion, cited Nvidia's entry into the CPU industry as a key driver of the upgrade, as noted in a post on X.

The analysts see the CPU business carrying a strong growth trajectory on the back of the ongoing AI agent trend. Over time, they expect the segment to account for about 5% of total revenue, turning Nvidia into a major competitor to AMD and Intel. That would mark a significant expansion for a company still best known for GPUs: the server processor market has long been split between Intel's Xeon and AMD's EPYC lines, and Nvidia's CPU push builds on the Arm-based design approach it already uses in its Grace data-center chips.

Beyond the CPU opportunity, the analysts argued that Nvidia's valuation makes the stock a bargain. Despite the company's strong revenue, profit, and free cash flow metrics, Nvidia trades at a forward price-to-earnings ratio of 23 — far below its five-year average of 43. The same dynamic shows up in its free cash flow valuation, with the forward price-to-free cash flow ratio falling to 23 against a five-year average of 45.

Those numbers indicate that investors see some risks affecting Nvidia's business. Among the most frequently cited concerns is the company's circular investment approach, in which Nvidia invests in its clients, who then use those funds to buy its chips. There are also worries that the AI bubble could burst in the near future; one of the most prominent voices raising that warning is Michael Burry, who accurately predicted the Global Financial Crisis. The list of frequently cited pressures extends beyond bubble fears: U.S. export restrictions have periodically curtailed Nvidia's advanced chip sales in China, and its largest cloud customers are building more of their own AI accelerators, including Google's TPUs and Amazon's Trainium chips.

Other top analysts tracking Nvidia share the bullish outlook. MarketBeat data shows the average analyst estimate at $308, about 45% above the current level, while analysts at Rosenblatt Securities, Cantor Fitzgerald, DA Davidson, BMO Capital Markets, and RBC believe the stock could climb above $300.

Nvidia Earnings Expected to Be Strong

The next important catalyst for the NVDA stock price is its upcoming earnings report, due out on Wednesday this week. Nvidia has a long history of beating and raising its revenue and earnings estimates. This time around, there is a likelihood that revenue doubled to more than $93 billion, with third-quarter guidance projected at $106 billion; analysts expect the two figures to come in at $92 billion and $103 billion, respectively.

There are no signs the company has lost momentum. Most of its suppliers, including SK Hynix and TSMC, recently published strong financial results. At the same time, its top clients — Microsoft, Google, and Amazon — also released strong results and boosted their guidance.

Alongside revenue and earnings growth, Nvidia is expected to strengthen shareholder returns through larger buybacks and dividends. In its previous earnings report, the company announced $80 billion in share buybacks, and its cheap valuation could justify an even bigger repurchase program. Beyond the headline numbers, investors will be watching data-center gross margins and any update on the rollout of the Blackwell chip generation, given that the data-center segment now accounts for the large majority of Nvidia's revenue.

Nvidia Stock Price Technical Analysis

On the daily chart, the NVDA stock price has slumped over the past few days, moving from a high of $227 to a low of $207 on Monday. There are now signs that the stock is slowly forming a harami candlestick pattern, characterized by a large bearish candle followed by a small bullish one; "harami" is a Japanese word meaning pregnant woman.

The stock has also filled the fair value gap that formed a few weeks ago and remains above its 50-day Exponential Moving Average (EMA). Against that backdrop, the most likely scenario is a bounce back toward a retest of the resistance level at $227.