Nvidia (NASDAQ: NVDA) is still one of the most popular stocks of 2024, with a rise of almost 87% so far. The market cap of the artificial intelligence (AI) pioneer, which is around $2.3 trillion at a share price of about $926, makes it the third biggest firm in the world, behind only Apple and Microsoft. There are some on Wall Street who think the AI stock, which is currently trending upward, will keep going up.
In a research note released on March 22, UBS reiterated its buy recommendation for Nvidia and increased its price target for the stock from $800 to $1,000. That $1,000 objective would indicate additional upside of about 8% given the current price of the stock.
Speculation among investors is high regarding Nvidia's potential in the artificial intelligence market.
At its annual GPU Technology Conference (GTC) last week, Nvidia unveiled its next-gen Blackwell chips to both in-person and online guests. Later this year, the business plans to release new processors that are expected to be around four times quicker than its current best-in-class GPUs. These GPUs power OpenAI's ChatGPT service, Sora video-generation software, and applications from other top AI providers.
The investment bank UBS predicted in its paper that Nvidia will experience yet another surge in demand. The AI leader's potential to start selling processors, software, and services to government customers worldwide is of special interest to the experts.
According to UBS, this trigger will propel Nvidia's sales to around $150 billion in the 2025 fiscal year, therefore they see stock dips as a good chance to purchase.
I concur with the UBS analysts' evaluation that Nvidia stock pullbacks should be viewed as opportunities to purchase. With the B200 Blackwell processor set to be released later this year, the company is expected to further solidify its already dominant position in the high-end GPU market.
To top it all off, Nvidia is still likely in the early stages of reaping the benefits of AI's meteoric rise, and the company's steady stream of software suite releases is further adding to its advantage.
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