Nvidia Stock Hits Fresh High as Analysts Tout AI Dominance
Nvidia Corp. (NVDA) shares surged to a fresh all-time high, climbing 2.1% on Monday, as veteran tech analyst Dan Ives reaffirmed his bullish stance on the company. Ives argued that Nvidia remains the primary hardware driver behind the AI revolution, stating, “There’s one chip in the world fueling the AI revolution. It comes down to there’s one chip in the world fueling, and that’s Nvidia.”
Ives believes Wall Street’s earnings estimates for Nvidia may be significantly underestimated, potentially by 20% to 30% over the next year. He noted that the company’s numbers could be “massively underestimated” not just in the current quarter but over the next 6 to 8 quarters. Nvidia’s stock has gained about 14% since its last earnings report on August 26 and is up 24.8% year to date, outperforming Intel Corp. (INTC) and Advanced Micro Devices (AMD) in the second half of the year, although both competitors have seen substantial gains year to date.
The broadening demand for AI applications beyond major hyperscalers is another key factor driving Nvidia’s growth. Ives highlighted the surge in enterprise and physical AI use cases, stating, “Big Tech is ultimately flexing its muscles again. We’ve seen just a massive acceleration from all these enterprise AI use cases.” He also noted that chip demand has surged relative to available supply, with prior ratios of 10-to-1 and 11-to-1 increasing to 13-to-1 and 14-to-1.
BNP Paribas recently raised its price target for Nvidia to $345 from $285, maintaining an “Outperform” rating. The investment bank acknowledged growing competition in AI chips but argued that Nvidia’s full-stack platform remains a key advantage. Currently, 58 of 61 analysts rate the stock ‘Buy’ or higher, with an average price target of $328.72, implying a 5% upside. The most bullish target among Wall Street analysts is $515.
Retail sentiment for NVDA has also shifted to ‘bullish’ from ‘neutral’ on Stocktwits. Traders expressed confidence in the stock’s advance, with one noting, “$NVDA there’s very little hesitation in this advance,” while another suggested the stock could climb to $300 if the deadlock between Beijing and Washington over Nvidia chip sales in China eases.