Rosenblatt Securities’ Hans Mosesmann has expressed great optimism regarding Nvidia Corp.’s stock following their latest earnings report. In fact, Mosesmann, who was already one of the most positive analysts covering Nvidia, further increased his bullishness by raising his price target on the stock from $800 to $1,100.
Closing at $471.16 on Wednesday, Nvidia shares have the potential to surge over 130% if they reach Mosesmann’s new target.
Unprecedented Growth and Potential
Considering Nvidia’s impressive performance in recent quarters, Mosesmann believes that the company is only at the beginning stages of its success. According to Chief Executive Jensen Huang, Nvidia anticipates a substantial shift in the data center sector towards accelerated computing for generative AI models. This shift could have a significant impact on Nvidia’s growth, especially given the existing $1 trillion data center installed base.
Positive Outlook for the Future
Mosesmann highlights additional trends, such as edge artificial intelligence, the automotive business, and enterprise networking and software opportunities, as potential areas of growth for Nvidia. Moreover, he expects Nvidia’s quarterly revenue forecast of approximately $16 billion for the current quarter to continue increasing until calendar year 2024.
Despite anticipation of supply constraints throughout most of 2024, Mosesmann maintains a positive outlook for Nvidia’s future earnings. He projects that the company’s earnings per share could reach the “high $20s” by calendar year 2025. Furthermore, Mosesmann’s $1,100 target price is based on a reasonable 40-times price-to-earnings multiple in relation to calendar year 2025.
Nvidia’s Strong Position in the Market
Nvidia’s unparalleled software capabilities and exposure to growing trends in AI and data centers solidify its position as a leading industry player. Despite competition, the company remains a top secular grower, currently experiencing a prolonged growth cycle.
It is important to note that not all analysts share the same level of optimism regarding Nvidia’s future prospects. However, the current consensus on Wall Street indicates that Nvidia’s AI boom shows no signs of slowing down anytime soon.
