Investment firm Piper Sandler has named Nvidia its top large-cap pick, citing the company’s lead in artificial intelligence computing and upcoming Blackwell chip launch. Analyst Harsh Kumar maintained an overweight rating on the stock and raised his price target to $175 from $140.
Kumar attributes Nvidia’s bullish outlook to the growing demand for AI accelerators, which he expects to reach around $70 billion by 2025. The analyst believes Nvidia will capture most of this growth while sharing some with its merchant chip competitors. Favorable capital expenditure trends at major tech companies, such as Microsoft, Meta, and Amazon, also support Nvidia’s prospects.
The upcoming Blackwell chip is expected to generate between $5 billion and $8 billion in revenue, starting from the first quarter next year. Kumar forecasts that supply constraints will improve over time, leading to increased demand for the chip. He projects Blackwell architecture revenues could increase by 200% or more in the April quarter.
As a result of these factors, Nvidia’s shares have soared 198% year-to-date. The company’s stock is now priced at around 19% above Friday’s close.
Source: https://www.cnbc.com/2024/11/11/piper-sandler-names-nvidia-a-top-pick-sees-shares-rising-20percent-after-blockbuster-year.html