Chipmaker Nvidia (NVDA) remains a Wall Street favorite despite concerns about a slowdown in AI spending. Indeed, five-star Wedbush analyst Dan Ives told Yahoo Finance that Nvidia’s demand is unmatched at a “fifteen-to-one supply” ratio. This suggests that the company’s growth is far from over. In fact, Ives compared Nvidia to an all-night party that doesn’t end until 4 a.m., but it is only 9 p.m. right now. He also expects Nvidia will eventually hit a $5 trillion valuation.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Furthermore, Ives believes that the current nervous moments are just temporary and thinks this is just the second year of a decade-long AI buildout. Ives remains confident that Nvidia will dominate the market and added that, for now, it is “the only game in town.”
Other Analysts Are Also Optimistic
Separately, other analysts are also optimistic about Nvidia stock. Bank of America analyst Vivek Arya, who is also a five-star analyst, echoed similar confidence with a Buy rating and a $190 price target. Indeed, he praised Nvidia’s Blackwell and upcoming Rubin GPUs, which are set to launch in 2025.
However, custom chips may challenge Nvidia’s GPUs in the AI market, with Morgan Stanley estimating their share of cloud AI services could grow from 11% in 2024 to 15% by 2030. Still, Morgan Stanley believes Nvidia’s consistent innovation and execution give it a strong advantage. In addition, Truist’s William Stein raised his price target to $204 due to Nvidia’s dominance in the full technology stack.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the past three months. After a 163% rally in its share price over the past year, the average NVDA price target of $177.14 per share implies an upside potential of 30.8% from current levels.
