Nvidia (NVDA) saw a surge in its stock price during intraday trading on Tuesday following a series of bullish analyst reports. KeyBanc analysts notably raised their price target for Nvidia, citing robust demand projections for Nvidia’s upcoming Blackwell platform designed for artificial intelligence (AI) applications.
As of noon ET on Tuesday, Nvidia shares were up nearly 3% to $131.56, building on earlier gains fueled by optimistic outlooks from UBS and Wolfe Research regarding the potential of the AI chipmaker.
KeyBanc Capital Markets adjusted their price target for Nvidia from $130 to $180, marking a significant upside potential of over 40% from Monday’s closing price. The analysts reiterated their “overweight” rating on the stock.
Strong Blackwell Demand
KeyBanc analyst John Vinh highlighted that interest in Nvidia’s forthcoming Blackwell platform has exceeded initial expectations. “The interest and demand in GB200 is greater than we initially had sized,” Vinh noted, suggesting that strong Blackwell demand could bolster data center revenues to over $200 billion by 2025.
Support for Older Products
Addressing concerns about potential sales slowdowns as customers anticipate Blackwell’s release, KeyBanc analysts reassured that demand for Nvidia’s current Hopper products remains robust. “Despite the impending launch of Blackwell in 2H24, we are not seeing any signs of a demand pause as demand for H100 remains robust, as we continue to see rush orders,” the analysts stated.
Future Prospects
Looking ahead, Nvidia is planning its next-generation AI platform, Rubin, to succeed Blackwell, continuing its rapid product cycle aimed at staying at the forefront of AI technology advancements.
The positive outlook from analysts underscores Nvidia’s strategic positioning in the AI semiconductor market, driven by strong anticipation for its upcoming products amidst sustained demand for its current offerings.
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