Shares of Nvidia (NVDA) -) stock continue to climb, with share prices up 2.80% this week and up a staggering 198% on a year-to-date basis. The stock is trading at $436 per share as of August 17.
Now, one Wall Street analyst says he expects the Santa Clara, Cal. semiconductor company to keep on rolling – all the way up to $800 per share.
DON’T MISS: Nvidia Extends Gains
That after Rosenblatt Securities analyst Hans Mosesmann boosted his NVDA per-share from $600 to $800 in a recent research note. Such a move would hike Nvidia's stock up about 80% from its current share price and leave the company “in a league of its own," Mosesmann said.
No doubt, Nvidia is speeding along the artificial intelligence highway and is leaving competitors in the dust.
“With unmatched strengths in compilers, libraries, and vertical optimizations, NVDA can overcome hardware specification challenges and drive recurring software revenue streams,” Mosesmann wrote in the August 16 note. “While in the early innings, we view NVDA as a high-conviction story thriving amid uncertainty given secular AI, autonomous driving, and metaverse tailwinds.”
More Business of AI:
- Here's the startup that could win Bill Gates' AI race
- Meet your new executive assistant, a powerful AI named atlas
- The company behind ChatGPT is now facing a massive lawsuit
Mosesmann is hardly alone with a bullish outlook on Nvidia.
In issuing a “buy” rating on NVDA this week, UBS analyst Timothy Arcuri hiked his price target by $65 to $540, citing the company as a “kingmaker” in the AI chip market.
“Demand will dictate Nvidia's long-term AI revenue opportunity, but supply should be the primary determinant for its data center revenue at least through C2024," Arcuri said. "Nvidia is quite literally serving as 'kingmaker' as a huge wave of capital and new financing vehicles are chasing new AI software and specialized cloud infrastructure models while enterprises are still very early in a struggle to access enough capacity to build out AI at scale."
Currently, Nvidia holds about 6% of the worldwide data-center sector, valued at approximately $250 billion.
Arcuri expects NVDA’s share of that market to quadruple by the end of 2023. He also expects “Blackwell,” Nvidia’s upcoming high-end microchip, to hit the semiconductor market in late 2024 at a 40% price appreciation over current high-end H100 chips.
That profitable scenario could dissuade NVDA investors who may be considering taking their own chips and running this year.
“Even for more tactical investors, it still seems early to get off this train," Arcuri stated.
Get exclusive access to portfolio managers and their proven investing strategies with Real Money Pro. Get started now.
