UBS reiterates buy rating on Nvidia with $245 price target, citing AI demand

UBS has reaffirmed its buy rating on Nvidia, holding firm at a $245 price target. Analyst Timothy Arcuri pointed to positive trends in AI infrastructure spending as the backbone of the call, even as seasonal supply chain adjustments in Taiwan introduced some noise into the picture. The target was revised upward from $235 earlier this year, following strong Q4 fiscal results driven by AI revenue.

Why a chip stock matters for crypto

Nvidia isn’t just a semiconductor company anymore. It’s the hardware layer underneath a growing ecosystem of decentralized AI networks, GPU marketplaces, and rendering protocols that live on blockchains.

Nvidia made a $420 million investment in Bittensor ($TAO) as of late April 2026. That’s not a token airdrop or a vague partnership announcement. That’s real capital flowing from the world’s most important AI hardware company into a crypto AI protocol.

Nvidia’s VP Bryan Catanzaro reinforced the company’s AI focus at a May 8 event, emphasizing the growing importance of inference, the process where trained AI models actually generate outputs, to the broader AI landscape. Inference workloads are particularly relevant to crypto AI metrics because decentralized networks increasingly compete to offer inference services at scale.

The institutional crossover effect

Bank of America analysts weighed in on this dynamic back in mid-April, highlighting AI infrastructure contracts as a potential tailwind for crypto AI token demand. The logic follows a chain: Nvidia sells more chips, more AI infrastructure gets built, more of that infrastructure touches blockchain-based protocols, and tokens tied to those protocols attract capital.

That said, causative relationships between Nvidia’s stock performance and specific token prices remain speculative. Positive sentiment tends to be contagious across related asset classes.

What this means for investors

Bittensor stands out as the most direct beneficiary of Nvidia’s strategic interest, given the $420 million investment relationship. Projects with genuine GPU utilization, real inference workloads, and integration into the broader AI supply chain are better positioned than tokens that simply append “AI” to their marketing materials.

Traders should watch Nvidia’s upcoming earnings cycles closely. The company’s Q4 fiscal results earlier this year showed AI revenue acceleration that preceded the price target revision from $235 to $245. If that trajectory continues, the institutional capital flowing into adjacent crypto projects could accelerate in tandem.

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