Finance
Will Nvidia stock go to $1,400? 1 Wall Street analyst thinks so.
Nvidia (NASDAQ: NVDA) Recently, investors have seen more evidence that the surge in demand for data center products that power artificial intelligence (AI) applications has more legs. That helped convince Rosenblatt analyst Hans Mosesmann to continue recommending investors buy the stock.
His company’s $1,400 price target for Nvidia stock remains one of the highest on Wall Street. That represents an increase of about 34%, even after Nvidia shares took a dip following its first-quarter fiscal 2025 results. Nvidia stock are now more than doubled by 2024.
Nvidia once again exceeds expectations
The strength of Nvidia’s AI business has been no secret to investors. Expectations were high, but the company continues to exceed Wall Street’s estimates and itself. Recall that the three months ended April 28 marked the fourth straight quarter in which the company exceeded its own revenue expectations by at least $2 billion.
Year-on-year, revenue by business segment increased as follows:
While the company is growing in all areas, it is data center AI company is what’s driving the stock right now. Mosesmann believes this will continue, with the company exceeding expectations as Nvidia expects another meaningful revenue increase in the current fiscal quarter.
Nvidia wants even more of the AI pie
Some investors thought demand would decline in the short term as customers waited for the more powerful Blackwell architecture. But that clearly hasn’t happened and shipments to Blackwell are expected to begin before the end of this year. In the earnings release, Nvidia CEO Jensen Huang said, “We are ready for our next wave of growth. The Blackwell platform is in full production.”
The runway for growth in AI spending appears to be long. And Nvidia also continues to innovate in other areas. The company wants to offer customers more and more value. It is adding software solutions to its server stack offering.
That makes me think that the $1,400 price target will just be a stop on the way to even higher prices.
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Howard Smith holds positions at Nvidia. The Motley Fool holds positions in and recommends Nvidia. The Motley Fool has one disclosure policy.
Will Nvidia stock go to $1,400? 1 Wall Street analyst thinks so. was originally published by The Motley Fool
