Why Nvidia’s Share Price Could Keep Climbing Beyond This Year

2024 has been a great year for artificial intelligence and particularly for big firms in the space like Nvidia Corp. (NASDAQ: NVDA), whose stocks have gained significantly since January. Despite a recent drop in some shares, analysts are still optimistic when it comes to Nvidia’s stock, expecting that it’ll gain more as demand for the firm’s chips continues to surpass their supply.

Jensen Huang, the firm’s CEO, told investors in November that the era of artificial intelligence was here and that the firm was poised to gain as computing scale continued to grow.

Of 21 analysts, 20 hold a buy or equivalent rating for Nvidia’s stock, with an average price mark of roughly $177. This suggests an over 31% surge since its latest price of $134.70. Nvidia’s market cap currently stands at $3.36 trillion. Last month, the firm announced that its Q3 revenue had hit $35.1 billion, with revenue from its data centers increasing significantly to $30.8 billion.

In its earnings call, executives revealed that they’d observed overwhelming demand for the firm’s next-gen Blackwell AI system. This system, which has been referred to as a game changer for the industry by Huang, has been designed to improve performance for AI, data center, and machine learning applications.

Analysts at Morgan Stanley wrote in a recent note to clients that they expected Nvidia to maintain its lead in the AI space in the near term, noting that the firm’s strong relationships with leading cloud providers and R&D budget as key drivers of this. Analysts at Citi expect the firm’s stocks to surge even more in 2025, bolstered from the start of the year with a keynote address being delivered by Huang at the Consumer Electronics Show in January.

The analysts expect that the CEO may announce higher projections for Blackwell sales at the show and call attention to the growth opportunities linked to the increasing industrial and enterprise demand for robotics. The chipmaker is also expected to launch new graphic cards in addition to making other product announcements.

Additionally, analysts at Goldman Sachs expect major announcements during the firm’s annual GPU technology conference, which will be held in March. During this year’s tech conference, Nvidia launched the Blackwell platform and also revealed that it’d be partnering with others in the industry.

In the past, Huang has stated that Nvidia planned to launch a new chip family annually, with the firm being expected to offer more information about Rubin, Blackwell’s successor, in the near future.

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