Nvidia (NVDA) has become the subject of intense optimism from Wall Street analysts, with multiple firms raising their price targets and calling the chipmaker a “must-own” stock, citing the company’s pivotal role in the booming artificial intelligence (AI) market, Investor’s Business Daily reports.
The excitement comes as Nvidia ramps up production of its next-generation AI chip, Blackwell, positioning the company to capture a larger share of the rapidly expanding AI infrastructure market.
Melius Research analyst Ben Reitzes was among those expressing confidence in Nvidia, reaffirming his “buy” rating and lifting his price target from $165 to $185. Despite a 1.6% decline in Nvidia’s stock price on Monday, closing at $145.26, the stock reached an all-time high of $149.77 on Friday, highlighting the ongoing investor enthusiasm. Reitzes called Nvidia stock a “once-in-a-lifetime opportunity” due to its dominant position in AI, emphasizing that the sector is still in its early stages.
“AI is still on the come, with compute-intensive catalysts and use cases like text-to-video, autonomous agents, self-driving cars, and visual intelligence in their infancy,” Reitzes wrote in a client note.
He drew a comparison to Apple’s early days, suggesting that giving up on Nvidia now is akin to abandoning Apple when it first launched the iPhone.
Reitzes also highlighted solid capital expenditure plans at major AI infrastructure spenders such as Microsoft, Amazon, Meta Platforms, Google, and Oracle. He forecasts that data center capital expenditures at these companies will rise 24% in 2025 to $282 billion, creating significant opportunities for Nvidia.
In a similar vein, Piper Sandler analyst Harsh Kumar raised his price target for Nvidia stock from $140 to $175, calling the company his top large-cap pick. Kumar emphasized Nvidia’s “dominant positioning in AI accelerators” and its upcoming launch of the Blackwell architecture, which he believes will further cement its role in the growing AI sector.
“We are making Nvidia our top large-cap pick ahead of the Blackwell ramp,” Kumar wrote.
He also referred to the stock as “a must-own.” He pointed out that the total addressable market for AI accelerators is set to rise in 2025, with Nvidia well-positioned to capture a significant share.
Nvidia’s stock has garnered widespread attention, with price target increases from multiple analysts. Mizuho Securities raised its target to $165 from $140, while Morgan Stanley increased its target from $150 to $160, citing supply constraints around the Blackwell chip and Nvidia’s H200 series. UBS analyst Timothy Arcuri, meanwhile, raised his target to $185, expressing confidence in Nvidia’s ability to continue delivering strong results despite increasing investor expectations.
The next potential catalyst for Nvidia will be its fiscal third-quarter earnings report, set for release on November 20. The company’s strong positioning in the AI space, paired with its upcoming product launches, has analysts excited about its continued growth prospects.
Nvidia stock is currently featured on five Investor’s Business Daily (IBD) lists, including Leaderboard, SwingTrader, IBD 50, Sector Leaders, and Tech Leaders, reflecting its prominent standing in the market.
