NVIDIA has eliminated most negative factors that worried investors. Hedge fund managers from Boston wonder what prevents the stock from rising sharply. Loop Capital analyst Ananda Baruah set a new high price target of $250 per share. This target suggests the company could reach a $6 trillion market value.
Baruah points to strong financial projections to support his prediction. Supply chain analyst John Donovan expects GPU spending to hit $2 trillion by 2028. Graphics cards would represent 50 to 60 percent of total computing power compared to just 15 percent today. NVIDIA stated it can see tens of gigawatts worth of artificial intelligence projects ahead.
The company earns between $40 billion and $50 billion for each gigawatt of new AI infrastructure. UBS analysts believe a conservative 20 gigawatt pipeline could generate $1 trillion in revenue for NVIDIA. Baruah expects hyperscalers, sovereign AI data centers, generative AI and accelerated computing to drive future growth. Bank of America analyst Vivek Arya takes a more cautious view of the AI market.
Loop Capital predicts NVIDIA will ship 6.5 million graphics cards this year and 7.5 million next year. Each card should sell for more than $40,000 on average. Baruah admits the company might achieve these sales figures but still fall short of the $6 trillion valuation. The stock rose 3 percent and trades at $152 per share. NVIDIA shares have gained 10 percent this year.
Baruah points to strong financial projections to support his prediction. Supply chain analyst John Donovan expects GPU spending to hit $2 trillion by 2028. Graphics cards would represent 50 to 60 percent of total computing power compared to just 15 percent today. NVIDIA stated it can see tens of gigawatts worth of artificial intelligence projects ahead.
The company earns between $40 billion and $50 billion for each gigawatt of new AI infrastructure. UBS analysts believe a conservative 20 gigawatt pipeline could generate $1 trillion in revenue for NVIDIA. Baruah expects hyperscalers, sovereign AI data centers, generative AI and accelerated computing to drive future growth. Bank of America analyst Vivek Arya takes a more cautious view of the AI market.
Loop Capital predicts NVIDIA will ship 6.5 million graphics cards this year and 7.5 million next year. Each card should sell for more than $40,000 on average. Baruah admits the company might achieve these sales figures but still fall short of the $6 trillion valuation. The stock rose 3 percent and trades at $152 per share. NVIDIA shares have gained 10 percent this year.
