Nvidia (NVDA) stock jumped 5% on Tuesday after the chip giant announced a slew of favorable updates, strategic collaborations, and investments at the GTC event in Washington, D.C., reinforcing demand for its artificial intelligence (AI) GPUs (graphics processing units). Remarkably, NVDA stock is poised to make history as it approaches a market cap of $5 trillion. Reacting to the encouraging updates, top D.A. Davidson analyst Gil Luria raised his price target for Nvidia stock to $250 from $210 and reiterated a Buy rating.
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NVDA stock was up 3.2% in Wednesday’s pre-market trading.
Top Analyst Reaffirms Bullish Stance on NVDA Stock
Luria highlighted that Nvidia continues to demonstrate that it is the leader in AI compute while expanding across several industries and use cases from quantum computing to telecommunications. Furthermore, the 5-star analyst believes that the market is currently discounting upside to Nvidia’s data center revenue through Fiscal 2026.
Additionally, Luria continues to believe the market may be underestimating the “insatiable demand” for compute. He noted that Nvidia’s management expects the Blackwell and Rubin generations in 2025 and 2026 to generate $500 billion in revenue from the sale of 20 million GPUs, with 6 million GPUs already shipped. Interestingly, Wall Street currently expects Nvidia’s data center revenue over the same period to be around $366 billion, with the company’s guidance now about 37% higher than the consensus forecast, noted Luria.
Also, Luria contends that the market isn’t fully recognizing the potential upside in these estimates. The analyst remains confident about the capabilities of Nvidia’s existing and future models and believes that the current level of demand for computing power from companies like OpenAI (PC:OPAIQ) is justified. Luria doesn’t believe that the industry is reaching levels that can be characterized as “overbuilding.”
Interestingly, Luria ranks No. 510 among more than 10,000 analysts on TipRanks. He has a success rate of 57%, with an average return per rating of 16.9% over a one-year period.
Is NVDA Stock a Good Buy?
Given the solid demand backdrop, Nvidia stock scores Wall Street’s Strong Buy consensus rating based on 35 Buys, one Hold, and one Sell recommendation. The average NVDA stock price target of $225 indicates 12% upside potential.
