It doesn’t take much to move the needle for semiconductor giant Nvidia (NASDAQ:NVDA). Indeed, the company has a myriad of catalysts that investors have to factor in. That said, today’s 2%-plus move higher in early afternoon trading does come on the heels of additional analyst price target upgrades — this time from Wolfe Research and UBS.
Analysts at both firms raised their price targets on NVDA to $150 per share, up from $125 at Wolfe and $120 at UBS. The apparent catalysts for both upgrades appears to be incredibly high demand for Nvidia’s Blackwell platform, as companies scurry to add artificial intelligence (AI) capacity to get ahead of the competition.
As of early afternoon trading, NVDA stock is now approaching the $130 level, meaning these price targets imply roughly 15% upside from where the stock trades today. Let’s dive deeper into the upgrades — and what they may mean for investors moving forward.
NVDA Stock Surges on Price Target Upgrades
These analyst price target upgrades aren’t surprising. For a stock like Nvidia that appears to move in only one direction — up — analysts are forced to move their targets alongside the market. In today’s session, Nvidia surpassed both firms’ previous price targets, initiating a move from analysts who don’t want to be caught behind the curve.
It’s entirely possible that Nvidia’s future growth rates could be higher than many expected, given the strong demand seen for its Blackwell platform and high-performance chips. That said, it’s also true that plenty of demand has likely been pulled forward. There is also a significant degree of uncertainty pricing out Nvidia’s cash flows two or three years from now.
Still, today’s price action is an indication that the broader market remains highly bullish on Nvidia’s ability to beat its sky-high estimates in the coming quarters. If Nvidia continues to perform at this breakneck speed and pump out even more chips than the market is expecting, this is a stock that could still rip higher from here.
Analysts have noted that there is a path to 50%-plus “content growth” for Nvidia GPUs in 2025, leading to these price target increases. It will certainly be interesting to see how the numbers come in over the coming quarters.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article
