The pullback in Nvidia (NVDA) is a buy opportunity.
Analysts at Citi just opened a 90-day catalyst watch on the stock, noting, “We expect supply chain commentary from…suppliers during earnings and Computex Taiwan on June 2nd where Nvidia CEO Jensen Huang will deliver a keynote which could be positive catalysts for the stock.” Citi also has a price target of $1,300 on the stock, with a buy rating.
It’ll also benefit from surging demand for AI chips, and from continued growth of AI.
Remember, according to Next Move Strategy Consulting, the AI market – currently valued at about $100 billion – could grow twenty-fold by 2030 to more than $2 trillion. All while technology massively disrupts everything about everything.
And, according to Marketing AI Institute, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture.
Helping, analysts at Evercore ISI recently initiated an outperform rating on the stock, with a price target of $1,160. From there, it could see $1,540, they added. Evercore believes Nvidia’s AI ecosystem play “could capture 80% of the value created during its respective computing era, with the potential to dominate the parallel processing market by 2030, a market that could be worth more than $350 billion,” says Business Insider.
Raymond James’ analysts also raised their price target on NVDA to $1,100 with a strong buy rating. “We believe concerns regarding a potential pause in customer spending ahead of Blackwell ramps are unwarranted as Inferencing demand continues to outpace GPU supply,” noted the firm, as quoted by Seeking Alpha. “We expect H200 to be a key near-term driver, followed by B100 / B200 ramps in 2H24. Our recent conversations in Asia point to a significant mix shift in favor of GB200 NVL systems, which positions NVDA to capture additional share of [data center] capex.”
That being said, investors may want to take full advantage of NVDA weakness.
