- UBS raises target price from $800 to $1,100
- Top of the range estimates pitched at $1,400
- $150 billion revenues predicted for calendar 2025
Analysts at UBS have upped their target price on AI (artificial intelligence) chips champion Nvidia (NVDA:NASDAQ) by 37.5% as the Santa Clara, California company continues to trump market expectations.
In February 2024, Nvidia posted the market’s most crucial results this year and it was blockbuster action all the way. Revenues surged by a remarkable 265% over last year, and were up 22% on the previous quarter, sending the stock surging 14% to $739, and it hasn’t looked back since.
$1,400 NVIDIA SHARES?
Nvidia’s share price now sits at $950, almost double where it started 2024, and up 550% since the start of 2023, making consensus next 12-month estimates of $955.60 look ridiculously off the pace. Top of the range projections stand at $1,400.
In September 2023, Shares flagged price estimates of $1,000, which looked hugely optimistic at the time.
Now, UBS analysts believe the stock could rally a further 16% or more before the year is out after lifting their target price from $800 to $1,100, emphasising that the tech giant is ‘the only chip company that can create its own market.’
After unveiling its latest AI Blackwell chip architecture and participation in several graphics processing technology conference sessions, UBS believes that Nvidia is on the verge of tapping into a fresh surge of demand from both global enterprises and sovereign states.
MORE RAMPANT GROWTH IN 2025
It means that the investment bank is now predicting a significant growth year for Nvidia in calendar 2025, with the company’s revenues expected to approach $150 billion, representing an estimated 30% increase. This projection has led to an upward revision of both revenue forecasts and the price target for Nvidia at UBS.
With the launch of Blackwell and NIM - a new software platform developed to streamline the deployment of custom and pre-trained AI models into production environments – UBS analysts anticipate a boost in Nvidia’s AI solutions, stating this should also accelerate the distribution flywheel for Nvidia’s AI solutions to ride alongside enterprise software.
‘The entire framework creates a central distribution structure similar to an app store and given the vast array of companies to potentially license Nvidia’s AI enterprise software, monetisation can add up quickly’, said UBS.
