NVIDIA (NASDAQ: NVDA) Shares of the leading artificial intelligence (AI) semiconductor maker could surge about 170% by 2024, but shares of the leading artificial intelligence (AI) semiconductor maker haven't done much in the last three months Performance.
But one Wall Street analyst believes investors should take advantage of this lull. OppenheimerRick Schafer just listed the company as one of his top picks in the semiconductor industry for 2025. His company has a price target of $175 per share, a 27% upside from recent levels.
That price would put Nvidia into elite territory, with a market capitalization of about $4.25 trillion. But Schaeffer said it makes sense. That's because he believes Nvidia's data center division alone will generate $172 billion in revenue by 2025. This would be an increase of approximately 50% compared to 2024.
In his latest note to investors Barron's"Nvidia is the largest volume producer of AI accelerators and the cost/bit leader in AI training. NVDA dominates the AI ​​infrastructure market with its full-stack hardware/software," Schafer wrote.
It's worth noting that Schaefer also mentioned software. Most investors believe Nvidia's dominance comes from its Hopper and Blackwell GPU (graphics processing unit) chips. But it also has software architecture for AI computer factories.
Software solutions, such as those included in the DGX platform for enterprise AI and the CUDA platform for developers, work with GPU accelerators. Sales of these products will also get a boost as technology companies and others increase capital spending on data centers and their built-in artificial intelligence architecture.
While competition continues to emerge, demand for its latest Blackwell architecture appears to be very strong. With the next-generation Rubin set to hit the market in 2026, the road to growth appears to be long. The recent lull in Nvidia stock does look like a good opportunity to buy before the stock moves higher.
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