Nvidia (NASDAQ:NVDA) plans to competitively price its latest artificial intelligence (AI) chips to appeal to a broad range of users. Nvidia’s CEO, Jensen Huang, expects these new chips, code-named Blackwell, to expand its market share in the data center market. Blackwell is the new generation of AI processors, promising superior speed to its predecessors.
Speaking at the GTC developer conference on March 19, Huang said there are about $1 trillion of installed data centers globally. Further, the expenditure in this sector amounted to around $250 billion in the previous year, with an annual growth rate of approximately 20%. Given Nvidia’s leadership in accelerated computing, encompassing GPUs, networking chips, and central processing units, the company will likely secure a significant share of the growing expenditure in the data center segment.
Huang added, “We want to make the entire market be able to afford Blackwell.”
Is Nvidia Still a Good Buy?
Nvidia stock has risen more than 245% in one year. Despite this notable appreciation in its value, analysts remain bullish about its prospects due to the significant growth opportunity, especially in the data center market.
Notably, NVDA’s data center revenue more than tripled to $24 billion in Fiscal 2024. Further, the company expects the segment to sustain momentum in Fiscal 2025 despite tough year-over-year comparisons.
Thanks to the positives, 39 analysts recommend buying NVDA stock, and two suggest holding it. Overall, Nvidia has a Strong Buy consensus rating. Analysts’ average price target on NVDA stock is $913.74, implying 2.21% upside potential from current levels.
