Nvidia is the world’s hottest AI company. Will its incredible winning streak continue?
No artificial intelligence (AI) stock is hotter and more influential than Nvidia (NVDA -2.25%) right now. The company’s share price has rocketed 155% higher across 2024’s trading, and the company continues to have an outsize impact on valuation trends in the AI space and the market at large.
In a note published last Friday, Evercore ISI maintained a buy rating on Nvidia stock and raised its price target from $145 per share to $150 per share. Based on the stock’s price of roughly $127 per share as I write this, the new price target suggests potential upside of roughly 18%. Should investors take the firm’s advice and buy Nvidia stock right now?
Nvidia’s growth outlook remains very promising
Citing strong demand from hyperscale cloud customers including Microsoft and Meta Platforms, Evercore thinks that Nvidia is poised to continue serving up strong performance. The company’s graphics processing units (GPUs) have become foundational hardware for advanced AI training and inference applications, and the firm’s analysts anticipate that the AI hardware leader will continue to benefit from demand trends in the second half of the year.
While some investors and analysts have wondered whether AI-related hardware demand may be poised to level off and recede in the not-too-distant future, there are signs that Nvidia is on track to prove the doubters wrong. In addition to strong demand from hyperscalers, the company is likely in the early stages of seeing purchases from government customers ramp up. The company also has some positive, hardware-level catalysts on the horizon.
With the upcoming launch of its next-generation Blackwell processors, Nvidia is poised to introduce a major new sales driver. The first Blackwell processors are expected to deliver major performance and power-consumption improvements compared to the H200 processors, which are currently best-in-class for AI and other accelerated computing applications.
Nvidia stock could see some volatile swings in conjunction with earnings news, geopolitical developments, and overall macroeconomic trends, but the stock continues to look like a worthwhile buy for long-term investors.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
