NVIDIA has achieved a significant milestone this year, reaching a trillion dollar valuation in late May. The company's stock price has doubled due to the increasing demand for AI-hardware in the artificial intelligence market. Business Insider predicts that NVIDIA will continue to thrive in the coming years. Mizuho analyst Vijay Rakesh believes that the stock price of NVIDIA has a further 20% upside potential, with a new target of $530. This target is considered conservative, according to a client note seen by Insider. Rakesh's previous price target for NVIDIA was $400. On Monday, NVIDIA shares closed at $446.12, marking a 0.7% increase. The stock has already surged by 205% this year.
Despite competition from companies like AMD and Intel, Rakesh predicts that NVIDIA will maintain its dominant position in the AI chip market until at least 2027. The demand for generative AI is growing rapidly, creating significant opportunities for hardware suppliers. NVIDIA, being an AI powerhouse, is expected to benefit greatly from this trend. Insider reports that the company could generate approximately $300 billion in AI-specific revenue by 2027, capturing a 75% market share of AI server units. This projection is ten times higher than Rakesh's estimate of $25 billion to $30 billion in AI revenues for this year. Rakesh has maintained a $140 buy rating and price target for AMD shares.
