At the Consumer Electronic Show (CES), chipmaker Nvidia (NVDA) showcased its advancements in generative AI across industries like enterprise, robotics, and automotive while also staying true to its gaming roots by revealing its latest GPUs, according to Oppenheimer. However, the investment firm, led by five-star analyst Rick Schafer, pointed out that Nvidia’s Blackwell AI chips are still in short supply. Still, Oppenheimer liked what it saw and expects the H200 series to play a significant role in revenue this year.
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Furthermore, Schafer highlighted Nvidia’s new AI models – NIM, NeMo, and Nemotron. Interestingly, Nemotron is based on Meta’s (META) Llama language model. He also noted Nvidia’s emphasis on robotics and automotive computing, which require three systems: DGX servers for training AI, AGX computers for running simulations, and a connector system to integrate these functions.
Moreover, the analyst praised Nvidia’s Project DIGITS, which is a $3,000 small AI supercomputer aimed at researchers and developers. Indeed, this could be a game-changer, as making AI tools more accessible to smaller organizations could potentially unlock billions in new revenue for Nvidia. It’s worth noting that, so far, Schafer has enjoyed an 85% success rate on NVDA stock, with an average return of 89% per rating. In addition, he currently rates the stock as a Buy with a $175 per share price target.
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 158% rally in its share price over the past year, the average NVDA price target of $178.16 per share implies an upside potential of 27.2% from current levels.
