Nvidia’s lead in the artificial intelligence market is expected to be sustainable for years to come, according to a report by Loop Capital Markets. Analysts Ananda Baruah and John Donovan rate Nvidia stock as a buy with a price target of 175. The company’s expertise in the total technology stack, including semiconductors, systems, and software, creates a competitive moat that sets it apart from competitors.
Nvidia is poised to benefit from the growing demand for AI training and inference. The company has already developed critical capabilities that position it for material leadership in both areas. With 5 million developers in its AI ecosystem and a presence with every relevant cloud provider and hardware supplier, Nvidia is well-positioned to capitalize on the trend.
Analysts from Loop Capital Markets note that Nvidia’s impact on computing is comparable to that of musical group Nirvana, which had a “sea-change impact” on the music industry. The company’s stock rose 3% on Thursday, closing at $138.31. Another analyst, Vivek Arya from BofA Securities, also expects Nvidia to have a positive showing at CES 2025 and has maintained a buy rating with a price target of 190.
Source: https://www.investors.com/news/technology/nvidia-stock-nvda-ai-chip-lead-sustainable