Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) is seen fetching up to $1,100 per share by analysts at UBS Securities on their thesis the company is on the cusp of an entirely new wave of demand for its graphics processing units (GPUs).
Following the launch of NVIDIA’s Blackwell AI graphics processing chips this week, the analysts upped their price target on the stock from $800 to $1,100 and awarded it a ‘Buy’ rating.
NVIDIA shares traded 2.8% higher at about $940 on Friday afternoon, having added more than 250% in the last 12 months.
“We believe NVIDIA sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns, with each sovereign potentially as big as a large US cloud customer,” they wrote.
“NVIDIA mentioned the Middle East (we think the United Arab Emirates and Saudi Arabia are most significant), Sweden, Japan, Korea, and Malaysia in the keynote in addition to major projects in other regions like Singapore, Switzerland, France, and others.”
The bank’s analysts see the 2025 calendar year being another solid growth year for the company with revenue approaching $150 billion, marking about 30% growth.
“New pre-packaged and pre-trained modular AI models (NIMs) announced together with Blackwell should also accelerate the distribution flywheel for NVIDIA's AI solutions to ride alongside enterprise software,” they wrote.
“The entire framework creates a central distribution structure similar to an app store and given the vast array of companies to potentially license NVIDIA's AI Enterprise software ($4,500 per GPU per year), monetization can add up quickly.”
However, they noted that their concerns about NVIDIA’s supply and ability to beat Street numbers have not gone away.
“But we would view any near-term weakness as an attractive buying opportunity given what we think is still out in front of us,” they concluded.