NVIDIA (NASDAQ: NVDA) It is one of the hottest stocks on the market in recent years. The company's shares have risen 840% since December 2022 on huge demand for the company's graphics processing units (GPUs), the chips that power nearly all of the most advanced artificial intelligence systems.
Nvidia currently has a market capitalization of $3.3 trillion, but some Wall Street analysts see upside from its Blackwell GPUs and robotics computing solutions. This is good news for Nvidia shareholders.
Tom O'Malley barclays bank Last week he raised his price target on Nvidia to $175 per share from $160 per share. This forecast implies nearly 28% upside potential from its current share price of $137. He cited expectations that Nvidia's next-generation Blackwell GPUs will drive significant sales growth as the reason for the upward revision.
Remember, Nvidia GPUs are the industry standard for accelerating data center tasks like artificial intelligence (AI). Compared with the previous Hopper architecture, Blackwell GPUs can process AI training tasks 4 times faster and AI inference tasks 30 times faster. O'Malley estimates Blackwell GPU sales will increase by $15 billion this quarter and believes that number could more than double next quarter.
Barclays wasn't the only Wall Street firm to upgrade its outlook. LSEG data shows that over the past 90 days, the average estimate for Nvidia's fourth quarter of fiscal 2025 (ending January 2025) has increased by 5%, and the average estimate for fiscal 2026 has increased by 9% during the same period. Many analysts attributed the upgrade to growing confidence in Blackwell.
Beth Kindig, chief technical analyst at the I/O Fund, is particularly optimistic. She believes data center sales will grow by at least 50% in fiscal 2026, driven by Blackwell GPU sales of at least $200 billion. Looking forward, Kindig expects Nvidia's market capitalization to reach $10 trillion by 2030, which would mean a 200% increase from its current market capitalization of $3.3 trillion.
In addition, Wedbush's Dan Ives said that demand for Blackwell GPUs currently exceeds supply by 15 times. In other words, he believes Nvidia can only offer one chip for every 15 chips customers want to buy. This provides context for recent comments from Nvidia CFO Colette Kress, who said during a third-quarter earnings call that Blackwell's "demand significantly exceeds supply."
Dan Ives recently told CNBC that Wall Street generally underestimates Nvidia's 30% earnings growth over the next few years. He attributed the shortfall in part to Blackwell GPU revenue, which he believes will exceed expectations in the near term. But in the long term, Ives also sees benefits in the consensus generated by robotic solutions.
This last point is especially important. The market is currently focusing on generative AI, but Nvidia CEO Jensen Huang said the next wave of AI is robotics powered by physical AI. For context, generative AI can create text, images, and other media content based on prompts, while physical AI can understand, navigate, and interact with the real world.
Nvidia has been very successful at monetizing generative AI, which gives us every reason to believe the company will have the same success with physical AI. NVIDIA has a clear advantage in providing full-stack computing solutions for autonomous robots. Its robotics platform includes the supercomputing chips and network equipment needed to train artificial intelligence models, as well as the software development tools needed to build industrial manipulators, self-driving vehicles and humanoid robots.
Importantly, Nvidia's automotive and robotics sales totaled just $449 million in the most recent quarter, dwarfed by the company's $30.7 billion in data center revenue. However, Huang believes that self-driving cars and robotics will eventually become the two largest computing industries in the world, which bodes well for strong growth in the coming years.
In fact, Ives estimates Nvidia has a $1 trillion opportunity in self-driving cars and robotics, and he believes the company will eventually achieve a $5 trillion market cap when it monetizes those opportunities. His forecast would imply a 52% rise in its current market capitalization of $3.3 trillion. This is undoubtedly good news for Nvidia shareholders.
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Trevor Jennewine works at Nvidia. The Motley Fool has a position and recommends Nvidia. The Motley Fool recommends Barclays. The Motley Fool has a disclosure policy.
Nvidia stock investors just got good news from Wall Street that could send shares soaring Originally published by The Motley Fool