AI (artificial intelligence) frontrunner Nvidia’s (NVDA) stock rallied to a fresh 52-week high yesterday following analysts’ bullish views. NVDA rose 4.1% to close at $143.71 on October 21, as analysts reviewed their recommendations ahead of the Q3 FY25 results, expected in November. Nvidia’s market capitalization now stands at $3.53 trillion, a feat achieved only by iPhone maker, Apple (AAPL).
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The Street expects Nvidia’s adjusted earnings per share (EPS) to jump 85% year-over-year to $0.74. Meanwhile, revenues are projected to increase 82% to $32.9 billion compared to Q3 FY24.
A Quick Look at Analysts’ Bullish Views
TF International Securities analyst Ming-Chi Kuo noted that the demand for Nvidia’s Blackwell GB200 chips is expected to zoom by 3 to 4 times in Q4 FY25, more than the total order from all other cloud service providers. Notably, tech giant Microsoft (MSFT) remains the largest worldwide customer for these chips, the analyst added.
Kuo projects shipments in the last quarter of 2024 to be in the range of 150,000 to 200,000 units. Moreover, in the first quarter of CY2025, the shipments are expected to show a significant jump of 200% to 250%, reaching 500,000 to 550,000 units.
Similarly, Bank of America analyst Vivek Arya lifted the price target on NVDA to $190 from $165, implying 32.2% upside potential from current levels. Arya calls Nvidia a “generational opportunity,” backed by its vital position in the AI space and the capability to shape industries for years to come. Arya also believes that Nvidia is a perfect partner for enterprise AI hardware and software solutions.
Another Nvidia bull, Daniel Ives of Wedbush, forecasts the AI infrastructure market to explode by ten times by 2027. Companies are expected to spend $1 trillion on AI capex during this time, and Nvidia stands to be the largest beneficiary of this tidal wave. Ives believes that tech stocks, including NVDA, are yet to see another 20% jump in 2025, backed by the next generation of AI revolution and the interest rate easing cycle.
Is Nvidia a Good Company to Buy?
Indeed, Nvidia seems like a good company to buy, considering analysts’ bullish thesis. The demand for its soon-to-be-shipped Blackwell products is being viewed as a major catalyst for the next lap of growth. Remarkably, CEO Jensen Huang has also stressed the “insane” demand for Blackwell chips during his recent interviews.
On TipRanks, NVDA stock commands a Strong Buy consensus rating based on 39 Buys and three Hold ratings. Also, the average Nvidia price target of $153.86 implies 7.1% upside potential from current levels. Year-to-date, NVDA stock has zoomed 190.3%.
