Analyst on Wall Street Predicts Nvidia Shares Ascending to $175, Raising the Question of Investment Worthiness
Nvidia's (NVDA, 1.10%) stock might soar an impressive 170% by 2024, but its shares have been rather stagnant in recent months. However, Wall Street analyst Rick Schafer from Oppenheimer sees this as an opportune moment for investors. He's positioned Nvidia as one of his top picks for 2025 in the semiconductor sector. Schafer's optimistic price target of $175 per share would represent a 27% increase from current levels.
The rapidly increasing market cap of about $4.25 trillion would be well-justified, according to Schafer. This is primarily due to his belief that revenue from Nvidia's data center segment will surge to an astounding $172 billion in 2025, a 50% hike from 2024.
In a recent investor note shared by Barron's, Schafer elucidated why Nvidia reigns supreme in the AI infrastructure market: "Nvidia is the largest volume producer of AI accelerators and the cost-per-bit leader in AI training. NVDA dominates the AI infrastructure market with their full-stack hardware/software."
While Nvidia is widely recognized for its Hopper and Blackwell GPU chips, Schafer's note highlights the company's software prowess as well. Its DGX platform for enterprise AI and CUDA platform for developers bolster its GPU accelerators, generating impressive sales.
This executive's predictions don't overlook the growing competition in the market. However, with strong demand for its latest Blackwell architecture and the anticipated launch of next-generation Rubin in 2026, Nvidia seems well-prepared to persistently dominate the industry. As the recent stagnant period in Nvidia stock might suggest, this is likely an excellent moment for investors to snap up shares before they skyrocket further.
Investors might find this stagnant period in Nvidia's stock an ideal time for investing, considering the positive forecasts about its future. The increase in revenue from Nvidia's data center segment to $172 billion by 2025, as predicted by analyst Rick Schafer, indicates a significant opportunity in finance.
