Nvidia: Analyst Predicts Price Target of 175 US Dollars

Nvidia's stock has witnessed a remarkable surge since the beginning of last year but has also undergone turbulent phases. After an impressive increase of 828%, the AI chip manufacturer lost 27% of its value, but now stands at only about 20% down. High expectations were attached to the financial report for the second quarter. Despite surpassing expectations, the results could not sustain the preceding stock rally. However, a Wall Street analyst views the decline as an enticing opportunity. Following the publication of the financial report, Cantor Fitzgerald analyst C.J. Muse confirmed his buy recommendation and a price target of $175 for Nvidia shares, representing a potential gain of 62%. Muse described Nvidia's results as "solid" despite the stock's recent weakness. Muse believes that concerns about the delayed market launch of Blackwell, Nvidia's next AI architecture, are unfounded: "This seems to be a non-event ahead of one of the most significant product cycles in Nvidia's history." Despite the current price weakness, the stock is "still too cheap to ignore." During the Q2 earnings presentation, CEO Jensen Huang emphasized the immense demand for Blackwell, calling it a "complete game changer" for the industry. Blackwell is expected to offer three to five times more AI throughput in power-limited data centers compared to its predecessor Hopper. The management anticipates revenues in the billions in the fourth quarter, before taking off next year. Nvidia forecasts revenue growth of about 80% year-over-year for the third quarter, after five consecutive quarters of triple-digit growth. In the long term, Generative AI is expected to contribute between $2.6 trillion and $4.4 trillion to the global economy, according to McKinsey & Company, with Nvidia at the forefront of this transformation. Currently, Nvidia's stock is traded at 38 times the expected earnings. However, its impressive history justifies every cent. Before investing in Nvidia, consider the following: the analyst team at Motley Fool Stock Advisor recently identified the ten best stocks for investors to buy right now—and Nvidia was not among them. The selected stocks promise enormous returns in the coming years. Stock Advisor offers investors an easy-to-follow success model, including portfolio advice, regular updates, and two new stock tips per month. Since 2002, Stock Advisor has outperformed the S&P 500 more than fourfold.