Nvidia (NASDAQ:NVDA) stock has been on a fairly constant upward trajectory over the past few years. But is there anything that could disrupt the AI chip giant’s impressive momentum?
The short answer is no, says Piper Sandler’s Harsh Kumar, a five-star analyst ranked in the top 1% of Wall Street stock experts. There is currently no sign that anything is going to cause the stock price to fall.
In fact, quite the opposite. The stock is poised to move higher, so further bullish valuation is needed. So, with the company’s “dominant position” in AI accelerators and the upcoming launch of its Blackwell architecture, Kumar now makes Nvidia a “top large-cap pick.”
“Our view is based on the belief that the overall TAM for AI accelerators will continue to grow by ~$70 billion in 2025, and that NVDA will capture the majority of the TAM increase, with only a small ceding to merchant chips. “We see it as well-positioned to acquire “competitor”,” Kumar said, explaining his position.
Blackwell availability and supply has been a key theme in recent Nvidia discussions, with Kumar saying the new chip will be generally available in the January quarter and is expected to “account for billions of dollars in revenue.” I think it will be done.”
Historically, Nvidia has outperformed market expectations in the early stages of product rollout. So while Kumar recognizes the supply constraints, he believes Nvidia could generate $5 billion to $8 billion in revenue from Blackwell in the January quarter, and his bias is that “a range of “It’s biased towards the upper limit.” Kumar expects demand for the H100 and H200 to continue to spread across cloud, enterprise, and sovereign space. However, Blackwell’s initial supplies in January and April will likely prioritize hyperscalers.
And hyperscalers have no intention of curbing capital investment. Companies with significant computing capital expenditures, such as Microsoft and Meta, have indicated that their computing spending may remain stable or increase as a percentage of total spending. Kumar continued, “All else being equal, the level of capital spending will be sustained until at least 2025, even if it is not accelerated by the shift to chips and servers and takes spending away from buildings and other fixed assets. I think it will be done.”
To this end, Kumar rates NVDA stock Overweight (i.e. Buy), while raising his price target from $140 to $175, predicting the stock could rise by up to 20% in the coming months. Suggests. (Click here to see Kumar’s track record)
Kumar’s view is consistent with the broader Wall Street consensus that NVIDIA holds a Strong Buy rating based on 39 Buys and 3 Holds. The average price target of $157.82 suggests ~8% upside over the next year. (See NVIDIA stock price forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
