$NVDA
Daiwa Capital Markets sees Nvidia rising even more from here
A trillion-dollar opportunity on the horizon could further boost shares of Nvidia, according to Daiwa Capital Markets.
The firm stood by its outperform rating on the chipmaker stock, but lifted its price target to $900 from $535. This corresponds to a potential 14% upside for Nvidia.
Riding on the artificial intelligence craze, Nvidia stock has largely fueled the market rally in 2024. Its shares have already gained 60% in 2024.
Analyst Louis Miscioscia called Nvidia the “big winner” when it comes to AI, listing several catalysts including the company’s library of AI programming support that makes their platform easier to use versus competitors. Additionally, the firm’s familiarity and developer support and full stack solution are hard to beat.
“Many reports suggest AMD/Intel GPUs are pretty darn powerful, they are, but it is not just about silicon, it is the full solution,” he wrote. “Nvidia is in the right place at the right time.”
But the larger question centers around how long Nvidia stock can keep rallying to new heights. However, Miscioscia voiced his optimism that the company could outperform in the long run, especially given a potential trillion-dollar opportunity for Nvidia.
“That Nvidia is seeing material inference GPU demand, bodes well for continued growth,” he wrote. “The basic concept is that x86 architecture, due to Moore’s Law, is no longer seeing material performance improvements. To meet the new, modern DC processing demand levels, most applications should transition to run on GPUs. If there is a migration from x86 to GPU, this is a ‘trillion’ dollar upgrade opportunity.”