NVDA stock keeps thriving, to no one’s surprise, in the light of the increasing demand for the company’s products and the anticipated Blackwell release, as Benchmark analysts have just raised their price target on the stock from $135 per share to $170.
Currently, NVDA stock is trading at nearly $130, so this new price target implies an upside of 30%. This incredible news for NVDA stock investors, as this decision from Benchmark came at a time when some analysts were starting to doubt Nvidia’s (NASDAQ: NVDA) future, believing that the firm had already fulfilled its potential and the golden days are over.
Benchmark’s Note on NVDA
Benchmark’s analyst, Cody Acree, said in a note that they had the opportunity to host Nvidia for a Fireside Chat discussion with investors, where they came away with increasing conviction that the company is well positioned to continue its leadership of the AI industry, with above expected revenue and earnings growth for the foreseeable future. According to Benchmark’s analysts, Nvidia is confident that no matter how many chips they will manufacture, the demand will always be bigger, therefore, the demand for their H100 and H200 chips remains robust, and Nvidia expects these chips to maintain the same enormous demand until early 2025.
Benchmark’s analysts were also encouraged to make such a decision based on their confidence in the resounding success the Blackwell GPUs will have once they’re released. And they have also added that Blackwell is currently in full production, with first revenue expected in the third quarter, and global availability into customer data centers expected in the fourth quarter.
Furthermore, Blackwell is set to launch in more than 100 systems, surpassing Nvidia’s last chip, Hopper. On top of that, while major cloud providers are developing their own AI chips, Nvidia’s established market position, robust ecosystem, continuous innovation, and strategic focus provide a strong buffer. The company’s leadership believes that these strengths will help them maintain their edge in the competitive landscape of AI hardware.
What’s Next for NVDA Stock?
Benchmark has just joined Wolfe Research, UBS and KeyBanc, as one of the gigantic Wall Street firms that have raised the price target on Nvidia in a very short period, and this is extremely positive news for Nvidia, as the company needed such a boost to dismantle all the doubts towards it.
And analysts keep betting on Nvidia because they believe that it is so hard to beat, and they see a very big chance in Nvidia maintaining its position as the unmatched giant of AI chips, as the company doesn’t only offer eloquent GPUs, but an entire ecosystem of services and products that runs the company’s AI platforms.
In fact, Nvidia has put the focus on not just chips but on a full computing platform, so if customers invest in the company’s software stack today, they’ll benefit from the innovations that will keep coming year after year. Although Nvidia’s chips are more pricey than that of other competitors, the high performance of the chip significantly increases efficiency of products, lowering costs over time, therefore, companies currently consider Nvidia the optimum path to creating high-performing products, from GPUs, CPUs to networking interface cards and switches, and saving a lot of money on the long run.
NVDA Stock Forecast
Blackwell will definitely boost Nvidia’s earnings to new heights once it’s released, but that’s not the end for the company’s success and innovation. Other innovations in the years to come should act as new catalysts, specifically Rubin which is Nvidia’s next-generation AI chip that will follow Blackwell, and it’s set to be released in 2026.
Also, Nvidia has spoken openly on multiple occasions about expanding its supply chains to meet up with the demand, and once this happens Nvidia’s profits and revenue will increase massively. Furthermore, Nvidia’s lead in the chip race and its unmatched progress in software services should be analyzed further as the firm invests in Databricks, one of the most promising and valued AI start-ups in the world.
Nvidia is also a developer in Figure AI, one of the world’s most important developers of humanoid robots. Besides, we believe that opportunities in robotics and AI software aren’t reflected in NVDA stock yet, and we believe that these applications are being overshadowed by their astonishing business of chip manufacturing.
In fact, many investors don’t take into account Nvidia’s brilliant activity in other sections of the AI industry. Given all of this, today, Nvidia trading for 46 times forward earnings estimates, still looks like a great long-term buy.
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