The flurry of analysts rushing to upgrade Nvidia (NASDAQ:NVDA) following yet another blowout quarter continues. Shares of NVDA stock have absolutely skyrocketed following a beat on the top- and bottom-lines yesterday, with TD Cowen analyst Matthew Ramsay among the analysts raising their price targets on the chip giant. TD Cowen’s price target on NVDA stock now sits at $1,200 per share — and Nvidia is quickly moving toward that level as we speak.
If NVDA stock closes above the $1,000 level, it will be another key psychological threshold the company smashes. Year after year, Nvidia continues to see incredible growth and this most recent wave driven by the artificial intelligence (AI) frenzy has truly been remarkable.
Let’s dive more into what this analyst report says — and why Wall Street is turning so bullish on the semiconductor firm.
NVDA Stock Rockets Above $1,000 Per Share, In Part Due to Analyst Upgrades
It has been a while since I’ve seen nearly all of Wall Street hold a bullish view of any one company like they have for Nvidia. Now, it’s really not fair to say that analysts got this one wrong. Nvidia’s performance has been mind-boggling, with the chipmaker now producing roughly as much revenue in a single quarter as it did for all of the past year.
That said, these price target increases are telling. TD Cowen’s view is that Nvidia’s revenue growth — driven by demand from its data center segment — could feasibly drive further price appreciation down the road. Ramsey believes it’s possible for the company to produce $100 billion from this segment by 2025, with demand for Nvidia’s AI factories also outstripping supply.
It’s also worth noting that demand from hyperscalers remains strong, but Nvidia is seeing additional demand materialize from less traditional customer segments. As the company continues to grow its global footprint and tap into a massive addressable market for its chips, its growth potential truly seems unlimited.
I never thought I’d say this, but it’s entirely possible that Nvidia could challenge for the title of the world’s most valuable company this year. At a $2.6 trillion valuation right now, Nvidia is now “only” $500 billion or so away from de-throning Microsoft (NASDAQ:MSFT). The anticipation among investors is palpable.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
