In a time where there’s economic uncertainty thanks to high interest rates and the upcoming presidential election, many analysts are choosing to bet on Nvidia (NASDAQ: NVDA), which is a company that’s expected to see more upside in the future despite concerns over the economy. This is because Nvidia is the main player in the AI chips market, and it’s very easy for the company to keep this position because it releases new AI products on an almost yearly basis. As a result, NVDA stock surged over 200% this past year.
This surge is expected to continue. According to recent reports, Nvidia is planning to release new chips that could cause an uproar in the industry, and of course, boost NVDA stock.
The R100
According to a recent blog post by TF International Securities analyst Ming-Chi Kuo, Nvidia’s next-generation AI GPU, dubbed the R100, could go into mass production late next year. The analyst said that the R-series chip, which is likely to use TSMC’s (NYSE: TSM) 3 nanometer node, could be mass-produced by the fourth quarter, with the system and rack solution starting mass production in the first quarter of 2026. The R100 is also likely to use TSMC’s chip on wafer on substrate packaging, just as this year’s B100 does. It could also have eight high-bandwidth memory, or HBM4, units.
The analyst also added that Nvidia realizes that the power consumption of AI servers has become a challenge for customers’ procurement and data center construction, which is why the R-series chips and system solutions focus on improving power consumption in addition to enhancing AI computing power.
This shows just how advanced Nvidia’s technology is and how it plans to stay up to date with everything that’s new in the AI market, as it’s already planning the release of more AI chips when its Blackwell chips, the world’s most powerful chips for AI, aren’t even out yet. But this chip isn’t the only new release Nvidia has planned. In fact, there are recent reports that talk about a release date for Nvidia’s next-generation computing platforms.
The RTX 5090 and RTX 5080
According to recent reports, Nvidia is planning to launch its next-generation RTX 5090 and RTX 5080 graphics cards in the fourth quarter of 2024, and this is based on the expectations of Nvidia board members, who handle manufacturing and distribution for these graphics cards. They also anticipate increased shipment volumes and average selling prices for the new GPUs, given the substantial upgrades the rumored 50-series represents.
The flagship RTX 5090 is expected to utilize Nvidia’s Ada Lovelace architecture and be manufactured using TSMC’s 3 nanometer process, enabling it to potentially support up to 18,432 Cuda cores. Meanwhile, the RTX 5080 is also rumored to leverage the Ada Lovelace architecture and 3 nanometer process, with an estimated 9,728 Cuda cores. Both new GPUs should deliver major improvements in performance and efficiency compared to existing RTX 4090 and 4080 models, and key features will likely include advanced ray tracing capabilities, DLSS 3 technology, increased memory bandwidth and VRAM capacity.
If this proves accurate, the launch of the RTX 5090 and RTX 5080 in late 2024 would establish these graphics cards as Nvidia’s new performance leaders for gamers and hardware enthusiasts, marking the arrival of its next-generation GPU technology. Conflicting leaks have emerged about whether Nvidia will launch its RTX 5090 or RTX 5080 GPU first, but launching the 5080 initially would align with Nvidia’s past model of building up to its flagship GPU. Historically, with architectures like Kepler, Maxwell and Turing, Nvidia debuted the x80 models first, followed by the more powerful Ti variants later on.
However, going back to launching the 5080 first allows Nvidia to space out its high-end GPU offerings, first showcasing the 5080 and generating anticipation for the even more powerful 5090 to come afterwards. While Nvidia has not officially announced its plans, a rumor from the YouTube channel Moore’s Law is Dead said that Nvidia may only launch the high-end RTX 5090 this year, and not the 5080. However, well-known Nvidia leaker Kopite7kimi has now disputed this rumor on X, saying that the 5080 will be released first.
Stanley Druckenmiller Reducing his Stake in NVDA Stock
Recently, NVDA stock took a slight dip after billionaire investor Stanley Druckenmiller reduced his stake in the company, saying that AI might be overhyped in the short-term, even though he believes it’s under-hyped in the long-term. While AI might be a bit overhyped now, it will change everything in the future, so long-term investors shouldn’t really take him reducing his stake in the company as a bearish sign.
From what he’s saying, it seems like he got lucky and got in before ChatGPT then decided to invest more when the chatbot became extremely popular, so it’s natural if he wants to take some profits now. This isn’t to say that Nvidia is a completely secure investment; there will be some volatility in the short and near terms, but in the long-term, Nvidia will become a much larger company. This is according to a series of bullish analyst opinions on Nvidia in recent weeks, which reflects growing optimism about the company’s growth prospects.
For instance, Truist analyst William Stein boosted his price target to $1,177, based on robust 2024 and 2025 growth expectations for Nvidia. Additionally, HSBC analysts hiked their price target to $1,050, while Bank of America analysts went to $1,100. And for Nvidia’s upcoming earnings, estimates already call for a substantial 473% EPS growth to $5.20 alongside 242% revenue expansion to $24.6 billion. The barrage of price target increases and strong earnings expectations highlight analysts’ confidence in Nvidia’s ability to capitalize on AI, data centers, and other emerging opportunities.
NVDA Stock Forecast
Nvidia is currently experiencing positive momentum, but uncertainty still looms regarding the company’s May 22nd earnings report. If NVDA stock rallies strongly on positive earnings, especially with heavy trading volume, this could indicate a definitive breakout and prime buying opportunity. NVDA stock has become the most important stock in the S&P 500, therefore, if the company can deliver the breakout results many expect, its stock may surge to new heights and it could also boost the entire market, and that’s something the market definitely needs right now after the Fed said that it’ll keep interest rates the same.
As Nvidia gears up to report earnings soon, analysts and investors alike will be tuned in to see if the company can live up to the hype and hit the tremendous growth projections that have driven several price target hikes. Nvidia has been smashing expectations since the AI boom, so it won’t be too surprising if it manages to do it again. But for now, investors should just wait and see how it all plays out on May 22nd. Maybe great earnings will be the catalyst NVDA stock needs to finally get to $1,000.
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