Latest Articles

Crude Oil Price Forecast Update – March 7, 2025

Crude oil prices are currently showing strong bullish momentum, approaching the $67.05 mark and attempting to break through this level. This movement signals a...
HomeLatestNvidia's Growth Prospects Justify Price Target Increase, Analysts Say

Nvidia’s Growth Prospects Justify Price Target Increase, Analysts Say

Nvidia (NASDAQ:NVDA) has seen its longer-term growth prospects and profitability metrics bolstered, prompting analysts at Stifel to revise their price target for the artificial intelligence chipmaker.

In a client note released on Tuesday, analysts announced an upward adjustment of Nvidia’s price target from $114 to $165 per share, factoring in the company’s recent decision to implement a ten-for-one stock split.

The revised target reflects Stifel’s projections, estimating Nvidia’s stock to trade at approximately 40 times the expected earnings per share of $4.10 for fiscal 2027.

“We expect the majority of near-to-medium term opportunities will come from high performance computing, hyperscale and cloud data center, and enterprise and edge computing,” the analysts asserted. They highlighted Nvidia’s transition from general-purpose computing to accelerated compute as a pivotal driver of revenue and profitability growth in the coming years.

However, the note also underscored potential risks to the updated price target, including a possible digestion period following significant investment phases, unforeseen U.S. trade restrictions on technology exports to China, and broader macroeconomic events.

On Tuesday, Nvidia’s stock price surged over 3% to reach $135.58, surpassing software giant Microsoft (NASDAQ:MSFT) in market capitalization to become the world’s most valuable company. The California-based company added more than $110 billion to its market cap, equivalent to the entire market value of Lockheed Martin (NYSE:LMT).

Previously recognized primarily for gaming-oriented chips, Nvidia has transformed into a leader in artificial intelligence over the past two years. CEO Jensen Huang has positioned Nvidia at the forefront of what he terms a new “industrial revolution” poised to reshape the global economy.

The substantial increase in Nvidia’s share price, which has soared by approximately 170% year-to-date, has significantly contributed to broader market gains. About one-third of the S&P 500’s 14% rise in 2024 can be attributed solely to Nvidia’s performance.

Related topics: