Are you looking to make savvy investment decisions in the technology sector? Look no further than Nvidia, a semiconductor giant that is making waves in the industry. According to Piper Sandler, Nvidia is a “must-own” stock, with the investment firm naming it their top large-cap pick.
Analyst Harsh Kumar has given Nvidia an overweight rating and raised the price target to $175, up from $140. This updated forecast represents a 19% increase from where the stock closed on Friday. The reason behind this bullish outlook? Nvidia’s upcoming Blackwell chip and its lead in artificial intelligence computing.
Kumar believes that the total addressable market for AI accelerators will continue to rise, with Nvidia poised to capture a significant portion of this market growth. In fact, the analyst predicts that Nvidia could see revenues of $5 billion to $8 billion from the Blackwell chip alone.
But it’s not just the Blackwell chip that has investors excited. Major tech companies like Microsoft, Meta, and Amazon are increasing their capital expenditures, which bodes well for Nvidia in the near to mid-term future. Kumar expects these spending levels to remain robust through 2025, further benefiting Nvidia.
With the Blackwell chip set to become available in the first quarter of next year, Nvidia is expected to see a significant revenue boost. As supply constraints ease, more customers are likely to adopt the Blackwell chip for their AI and machine learning applications, driving revenues even higher.
At Extreme Investor Network, we believe that Nvidia’s strong positioning in the AI market and its innovative product offerings make it a compelling investment opportunity. Stay ahead of the curve and consider adding Nvidia to your portfolio for long-term growth potential in the technology sector.