Nvidia shares are rallying to a new 52-week high on analysts' optimistic view

Shares of AI (artificial intelligence) leader Nvidia (NVDA) rallied to a new 52-week high yesterday on analysts' bullish views. The NVDA rose 4.1% to close at $143.71 on Oct. 21 as analysts reviewed their recommendations ahead of third-quarter fiscal 2025 results expected in November. Nvidia's market capitalization is now $3.53 trillion, a feat only matched by iPhone maker Apple (AAPL).

The Street expects Nvidia's adjusted earnings per share (EPS) to rise 85% year over year to $0.74. Meanwhile, revenue is expected to rise 82% to $32.9 billion compared to Q3 FY24.

A quick look at analysts' bullish views

Ming-Chi Kuo, an analyst at TF International Securities, noted that demand for Nvidia's Blackwell GB200 chips is expected to increase three to four times in the fourth quarter of FY25, more than the total order of all other cloud service providers. Notably, tech giant Microsoft (MSFT) remains the largest global customer of these chips, the analyst added.

Kuo expects deliveries to be between 150,000 and 200,000 units in the final quarter of 2024. In addition, shipments are expected to record a significant increase of 200% to 250% in the first quarter of fiscal 2025, reaching 500,000 to 550,000 units.

Similarly, Bank of America analyst Vivek Arya raised the price target for NVDA from $165 to $190, implying an upside of 32.2% from current levels. Arya calls Nvidia a “generational opportunity,” backed by its important position in the AI ​​space and ability to shape industries for years to come. Arya also believes that Nvidia is a perfect partner for enterprise AI hardware and software solutions.

Another Nvidia bull, Daniel Ives of Wedbush, predicts that the AI ​​infrastructure market will explode tenfold by 2027. Companies are expected to spend $1 trillion on AI investments during this time, and Nvidia is expected to be the biggest beneficiary of this tidal wave. Ives believes tech stocks, including NVDA, are yet to see another 20% rise in 2025, helped by the next generation of AI revolution and the interest rate cutting cycle.

Is Nvidia a good company to buy?

Given analysts' bullish thesis, Nvidia actually seems like a good company to buy. Demand for Blackwell's soon-to-be-released products is seen as a key catalyst for the next round of growth. Notably, CEO Jensen Huang has also highlighted the “insane” demand for Blackwell chips in his recent interviews.

On TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys and three Holds. Additionally, the average Nvidia price target of $153.86 implies an upside of 7.1% from current levels. Year-to-date, NVDA shares have risen 190.3%.

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