Nvidia (NASDAQ:NVDA) stock gained 4.1% today after Raymond James raised its price target. It also reassured investors by dismissing concerns about a potential slowdown in customer spending as “unwarranted.” After discussions with Nvidia’s head of investor relations, the firm’s five-star rated analyst, Srini Pajjuri, highlighted that demand for inferencing continues to surpass GPU supply.
Pajjuri pointed out that the introduction of the H200 is expected to significantly drive revenue in the near term, with further growth anticipated from the B100 and B200 products in the second half of 2024. He also noted a significant shift toward GB200 NVL systems in conversations with industry insiders in Asia. This positions Nvidia to gain a larger share of data center capital expenditures. As a result, the firm maintained a Strong Buy rating on Nvidia and raised its price target from $850 to $1,100.
Pajjuri expects Nvidia’s revenue momentum to continue well into 2025, thanks to the increasing complexity of AI models and stiff competition among major cloud service providers. Additionally, Nvidia’s Mellanox unit is anticipated to see substantial growth from new product releases and increasing sovereign demand. In fact, annual revenue is now estimated at around $13 billion, up significantly from $1 billion to $2 billion in 2020.
Is NVDA Stock a Good Buy?
Overall, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 242% rally in its share price over the past year, the average NVDA price target of $989.53 per share implies 9.2% upside potential.
