After experiencing a five-day uptrend, Nvidia's (NVDA, Financial) stock price has nearly reached its historical high. Recently, Nvidia shares increased by 4.05% to close at $132.89, just shy of the peak of $135.58 set in June. Wall Street analysts are optimistic, driven by the robust demand for Nvidia's new Blackwell chip series, which is anticipated to significantly boost the company's performance next year.
C.J. Muse, an analyst at Cantor Fitzgerald, expressed that Nvidia is a standout in the chip industry, with potential for significant breakthroughs. Muse and his team believe Nvidia's performance may exceed expectations. The Blackwell chip is crucial for Nvidia’s earnings potential, expected to contribute significantly in the fiscal quarter ending January, with anticipated revenues of around $40 billion, aligning with Wall Street's predictions.
Nvidia's CEO, Jensen Huang, noted the high demand for Blackwell, matching the company's strong execution capabilities. Muse forecasts Nvidia’s revenues to reach approximately $37 billion by January and $41 billion by April, surpassing market consensus by about $1 billion in each quarter. He emphasizes Blackwell’s role in driving performance and reducing concerns over potential short-term market fluctuations, making Nvidia a top choice for investment.
Similarly, Jordan Klein from Mizuho Securities highlighted growing interest from long-term investors and hedge funds in Nvidia's stock, particularly as 2025 nears. The intense demand exceeding supply for Blackwell chips is expected to propel substantial earnings growth. Furthermore, Phil Panaro, a former senior advisor at Boston Consulting Group, predicts that ongoing AI growth and the introduction of Blackwell chips could elevate Nvidia’s annual revenue from $61 billion in 2024 to $600 billion by 2030, possibly driving the stock price to $800 by that year.
Overall, Wall Street analysts maintain a "strong buy" rating on Nvidia, with 39 buy ratings and 3 hold ratings over the past three months, without any sell ratings. Following a 192% price increase over the past year, the analysts’ average target price is set at $152.44, suggesting around 15% additional upside potential.
