NVIDIA (Nasdaq: NVDA)) has reached the top of the market capitalization classification because of the strength of its products, and taking into account what is on the horizon, it will take a lot to overthrow the chip giant of its perch. It is, at least, the opinion of CJ Muse de Cantor, an analyst classified in the 3% of the action experts of Wall Street, who does not hesitate to sing the praise of the company after the Keynote of the GTC of the CEO of Jensen Huang.
“It is difficult not to be impressed,” says 5 -star analyst. “The excitement of the GTC is palpable and the advances are made in IA are really incredible.
The biggest point to remember for muse from the opening was the “absolute key focus” on “extreme computers” required for large scale inference of AI and how the company works to distribute the more advanced AI capabilities (that is to say reasoning) in different industries.
In the past, inference has been considered a lighter task in the processing of AI, but the request for calculation during the use of the AI (calculation of the test time) has “really changed the game here”. Nvidia is now focusing on the more effective meeting in terms of AI by improving the generation of tokens, the “inference fuel”, thus helping to make production of AI more affordable and energy efficient.
At the heart of everything, says Muse, Nvidia’s efforts to integrate his “best hardware in class with software initiatives”, like the new Dynamo software stack, which works as the operating system of “AI factories”. When associated with Blackwell, the combination offers approximately 40x of better performance of inference compared to previous generation hoppers.
In addition, Nvidia also revealed its roadmap for the following three generations of products, each promising “significant performance benefits”. The Blackwell Ultra is planned for an release in the second half, followed by Rubin in 2h26, and Rubin Ultra in 2h27.
In general, Muse thinks that the AI revolution is still at its beginnings. NVIDIA has described a massive opportunity in data center revenues, estimating at least $ 450 billion by 2028, fired by 1 dollars from Data Center CAPEX. It is a big leap compared to the 200 billion dollars + expected in 2025, involving a TCAC of 30% +.
“So far”, Muse has summarized, “we have a strong start of GTC and let’s stay as optimistic as never on our thesis (despite the backdrop of the difficult market). With NVDA merchant at 16x Cy26 EPS of $ 7, we strongly recommend adding positions, because NVDA remains easily our first choice. ”
In the end, Muse proud NVDA shares overweight (that is to say buying), while its price target of $ 200 implies that the action will climb ~ 70% higher in the next year. (To look at the history of muse, Click here))
Muse is not an aberrant value to Wall Street; 38 Others join him in the NVDA bull camp and with 3 additional titles, the action requires a high purchase consensus rating. By going through the average target of $ 176.81, in a year, actions will modify hands for a bonus of 50.5%. (See NVDA actions forecast))
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Warning: The opinions expressed in this article are only those of the featured analyst. Content is intended to be used for information only. It is very important to do your own analysis before investing.
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