Why can NVIDIA rise? This is the bullish answer
Analysts believe that the next catalyst for NVIDIA's stock price will be the listing of B100 and the sales performance of H200, as well as sovereign AI becoming a major customer similar to the cloud giants in the United States
NVIDIA's stock price recently hit a new all-time high, closing at $942.89 on Friday. According to Dow Jones market data, the company's stock price has been rising for the 11th consecutive week, setting a record for continuous gains.
This achievement is partly attributed to its demonstrated technological strength and future potential at the Global Technology Conference (GTC), once again proving its leadership position in the technology and semiconductor fields.
Analysts are optimistic about NVIDIA's prospects, believing that the momentum behind its stock price increase stems not only from better-than-expected current performance and profit forecasts, but also from the company's significant potential in the sovereign AI field.
As more and more countries globally begin to develop sovereign AI capabilities, NVIDIA's technology and products are expected to see increased market demand. UBS analyst Timothy Arcuri believes that sovereign AI could eventually become a major customer similar to the U.S. cloud giants, raising NVIDIA's target price from $800 to $1100, emphasizing that NVIDIA is the "only chip company that can create its own market."
According to Mizuho Securities analyst Jordan Klein, the next major catalyst for NVIDIA's stock price will be the launch of B100 and the sales performance of H200.
Despite concerns in the market about the pricing of NVIDIA's next-generation chips being too low, analysts believe this overlooks the overall value of the company's products. NVIDIA's Blackwell chip architecture focuses on overall system performance, with its profit margins and market potential expected to gradually become more apparent over time. Analysts anticipate that NVIDIA will maintain profit margin performance similar to the current Hopper architecture in the future.
Driven by technological innovation and market demand, NVIDIA's upward momentum in stock price is expected to continue, further solidifying its leadership position in the AI and semiconductor fields