After experiencing a wave of five consecutive gains, Nvidia's stock price inadvertently climbed to near historical highs. As of the close of the US stock market on Tuesday, Nvidia rose 4.05% to $132.89, only one step away from its peak of $135.58 set in June.
At the same time, Wall Street also saw a surge in prices. Analysts say that strong demand for the new Blackwell chip series will lead to strong performance for Nvidia next year. In contrast, after Nvidia released its last financial report, Wall Street was still nitpicking that its performance did not significantly exceed expectations.
Analyst C. from Cantor Fitzgerald, an American financial services company J. Muse believes that Nvidia seems to be the company most likely to make significant breakthroughs in the chip industry in the future. He and his team believe that among all the companies they have studied, Nvidia's performance has the greatest potential to exceed expectations.
Wall Street believes that the upcoming Blackwell chip, which is expected to make a significant contribution in the fiscal quarter ending in January next year, is crucial to Nvidia's profitability potential. Nvidia expects this product line to bring in "billions of dollars" in revenue for the quarter, while Wall Street's forecast is around $4 billion.
Nvidia CEO Huang Renxun previously stated that the market demand for Blackwell is "very crazy", and coupled with the company's consistent strong execution ability, Muse believes that Nvidia's future performance is expected to exceed expectations.
Muse expects Nvidia's revenue to reach approximately $37 billion in the fiscal quarter ending in January next year, and $41 billion in the fiscal quarter ending in April next year, both of which are approximately $1 billion higher than market consensus expectations.
He wrote in a report, "Prior to what we consider to be the largest and most significant product cycle we have ever seen, Blackwell should drive up performance and dispel concerns about potential short-term fluctuations in the future
In this context, Nvidia is undoubtedly our first choice, "he added.
Coincidentally, there is no exception. Mizuho Securities analyst Jordan Klein also stated that long-term investors and hedge fund investors are increasingly interested in the stock trend of Nvidia, especially as we enter 2025. Due to demand far exceeding supply, Blackwell chips may drive future profits significantly beyond expectations.
He cited the latest statement from Liu Yangwei, the chairman of well-known technology manufacturing companies Hon Hai/Foxconn. Liu Yangwei said on Tuesday that as Huang Renxun said, the demand for Blackwell chips is very crazy. This has sparked enthusiasm among investors.
In addition, Phil Panaro, former senior advisor at Boston Consulting Group, even believes that the continued growth of artificial intelligence and the introduction of Blackwell chips may increase Nvidia's annual revenue from $61 billion in fiscal year 2024 to $600 billion in 2030. In view of this, he predicts that Nvidia's stock price may soar to around $800 by 2030.
Overall, Wall Street analysts have consistently rated Nvidia's stock as a 'strong buy': in the past three months, they have given 39 buy ratings, 3 hold ratings, and 0 sell ratings. After a 192% increase in stock price over the past year, their average target price is $152.44, which means there is still about 15% room for the stock to rise.