The definition of “unstoppable” in the dictionary could easily be attributed to this Nvidia (NASDAQ:NVDA). The stock has performed well, driving the market's AI-driven rally, consistently making gains, and delivering masterclass after masterclass in its earnings reports over the past year. Since the start of the year, Nvidia shares have risen 66%, reaching a record high of around $820.
According to Tigress Financial's Ivan Feinseth, a 5-star analyst ranked in the top 3% of stock professionals on the Street, there's a strong chance the winning streak will soon come to an end as Nvidia continues to be “at the forefront of continued acceleration and “The tipping point remains the point of AI adoption across all industries and companies, which will continue to result in significant revenue and cash flow growth and greater value creation for shareholders.”
With that in mind, Feinseth rates NVDA stock a Buy while increasing his price target from $790 to $985, suggesting the stock has room for growth of about 20% in the coming year. (To view Feinseth's track record, click here)
The core of Nvidia's success lies in the data center segment, which houses the best-in-class AI chips. In its most recent report for the January quarter, the segment's revenue rose a significant 409% year-over-year to a record $18.4 billion. Given the large number of collaborations that Nvidia offers, further growth can be expected.
These collaborations include partnering with Google to introduce improvements to Nvidia's data center and PC AI platforms for Gemma, Google's open language model. Additionally, Nvidia has expanded its strategic partnership with Amazon's AWS by hosting the NVIDIA DGX Cloud on AWS. In the healthcare sector, where opportunities tend to appear under the radar, Nvidia is expanding its presence. It was announced that Amgen will use the NVIDIA DGX SuperPOD to advance insights in drug discovery, diagnostics and consumer medicine.
There was also a recovery in the gaming segment, which was once Nvidia's main business but is now overshadowed by the data center. In the latest report, gaming revenue increased 56% year-over-year to $2.9 billion as the company launched GeForce RTX 40 SUPER series GPUs powered by the latest NVIDIA RTX technology such as DLSS 3.5 Ray Reconstruction and NVIDIA Reflex. Nvidia also introduced microservices for the NVIDIA Avatar Cloud Engine, enabling game and app developers to seamlessly integrate cutting-edge generative AI models into non-playable characters. The number of AI-powered RTX games and applications that use NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies has now exceeded 500. Launched less than six years ago, NVIDIA RTX has quickly become a major PC platform for generative AI, adopted by many 100 million gamers and developers.
In summary, Feinseth says Nvidia should be a “core position in the AI investment theme and one of the best opportunities to drive the accelerated adoption of AI across all types of technologies and applications.”
Feinseth is far from the only NVDA bull on Wall Street. 37 other analysts join him in the bull camp, significantly outperforming the two skeptics, all leading to a “Strong Buy” consensus rating. Assuming the average price target of $886.52, shares will change hands at a premium of about 8% in a year. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is for informational purposes only. It is very important to do your own analysis before investing.