Nvidia’s shares have surged 840% since December 2022, driven by strong demand for its graphics processing units (GPUs). The company’s latest innovation, the Blackwell GPU, has analysts predicting significant upside. Tom O’Malley at Barclays raised his target price on Nvidia to $175 per share, citing expectations that the next-generation GPUs will drive a meaningful increase in sales growth.
The new Blackwell GPUs can handle AI training tasks up to four times faster and AI inference tasks up to 30 times faster than previous architectures. Analysts estimate these new chips will add $15 billion to sales in the current quarter and potentially double that amount in the next quarter. Barclays is not the only firm revising its outlook higher, with LSEG data showing a 5% increase in average earnings estimates for Nvidia’s fourth-quarter fiscal 2025.
Lead technology analyst Beth Kindig at the I/O Fund is particularly optimistic, forecasting data center sales to rise by at least 50% in fiscal 2026 driven by Blackwell GPU sales. She also estimates Nvidia will reach $10 trillion in value by 2030, implying a 200% upside from its current market value.
Dan Ives at Wedbush notes that demand for Blackwell GPUs is currently outpacing supply by a factor of 15. He attributes some analysts’ downward revisions to underestimate the company’s earnings growth, which he believes will beat expectations in the near term. Ives also sees significant upside from Nvidia’s robotics solutions in the long term.
Nvidia has an underappreciated opportunity in autonomous driving and robotics, with the next wave of AI expected to be robotics powered by physical AI. The company provides a full-stack computing solution for autonomous robots, including supercomputing chips, networking gear, and software development tools. Analysts estimate Nvidia has a $1 trillion opportunity in autonomous vehicles and robotics, which could lead to a market value of $5 trillion.
This growth potential is great news for Nvidia shareholders, who may see 50% upside from the company’s current market value.
Source: https://www.fool.com/investing/2025/01/20/nvidia-stock-investors-great-news-from-wall-street