$NVDA
UBS sees 31% upside for Nvidia on back of newest Blackwell chips
Nvidia’s new chip means good things for its share prices in the next year, according to UBS.
UBS reiterated its buy rating for the software firm, which specializes in producing graphics processing units.
Analyst Timothy Acuri also increased his price target for the firm to $1,150 from $1,100, indicating a 31% upside from Nvidia’s Monday close. Shares of Nvidia have already soared an eye-watering 77% in 2024 though they were off 0.6% in premarket trading Tuesday.
Acuri highlighted Nvidia’s new Blackwell chip, the GB200, as a catalyst. While the analyst had initially estimated the chip to be around 3% of Nvidia’s GPU mix in 2025, he revised the figure to around 37%.
Unlike Nvidia’s GH200 Hopper chip, the GB200 is better capitalized for artificial intelligence trainings and inference at scale. Therefore, companies such as Microsoft, Amazon, Alphabet, Meta and Oracle are set to order large volumes of the GB200 chip in 2025, Acuri said.
“Our sense is that demand for GB200 server racks is very strong — to some extent being driven by rapidly increasing bottlenecks in power infrastructure components, which is driving US hyperscalers to focus more on maximizing performance in a given footprint,” the analyst wrote.
Acuri noted, however, that the Hopper chip is probably staying “stronger for longer” as shipments of the Blackwell chip are delayed until at least late November or December of this year.