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Nvidia Deepens AI Ambitions With $1 Billion Lilly Drug-Discovery Lab as Wall Street Turns More Bullish

Analysts cite sustained demand with tariffs on advanced chips expected to have limited effect on H200 exports to China.

Overview

  • Jefferies lifted its Nvidia price target to $275 from $250 on Jan. 16 and kept a Buy rating, while J.P. Morgan reiterated Buy on Jan. 13.
  • Nvidia and Eli Lilly unveiled a San Francisco Bay Area AI co-innovation lab for drug discovery with up to $1 billion in joint funding over five years.
  • Jensen Huang and Dave Ricks announced the initiative at the J.P. Morgan Healthcare Conference, framing it as a blueprint for modeling complex biology.
  • Wolfe Research said the newly announced 25% tariff on certain advanced semiconductors functions as a mechanism for pre-agreed payments, with limited impact on H200 China shipments.
  • Recent commentary highlights ongoing investor conviction, including billionaire hedge-fund buying in Q3, alongside warnings about elevated valuations and potential AI bubble risks in 2026.