BING-JHEN HONG
Nvidia (NASDAQ:NVDA) was in the spotlight on Monday after investment firms UBS and Wolfe Research raised their price targets, noting that recent checks indicate that demand for its upcoming Blackwell line is "exceedingly robust."
Shares rose 2% in late trading.
Based on the recent checks into Blackwell, it's likely that Nvidia could earn roughly $5 per share in 2025 as the order pipeline for NVL72 and NVL36 is "materially larger" than it was just two months as the budgets for the major hyperscalers firm up, UBS analyst Timothy Arcuri said. Arcuri raised his price target to $150 from $120 as a result.
Additionally, investors may reap the rewards as a "wall of worry" has cropped up in recent weeks, Arcuri said, pointing out that sentiment has faded in recent memory. (Nvidia received a rare downgrade last week from New Street Research.)
Wolfe analyst Chris Caso also raised his price target to $150, noting that recent checks indicate a path to 50% or more content growth for Nvidia's GPUs in 2025, with incremental upside coming from unit growth and better networking attach rates.
"Since we think it's very early to know where CY25 GPU units will ultimately land we are presently remaining conservative with AI server unit assumptions in our model - but we do think unit growth can provide a source of further upside to our newly revised numbers," Caso wrote in a note to clients.
This story has been updated to include information from Wolfe Research.