NVIDIA is ending 2024 on a historically strong footing, and 2025 might turn out to be equally auspicious provided that the GPU maker is able to deliver on Wall Street's lofty expectations. Today, Truist Securities raised the proverbial bar on the expectations count by incorporating a whole new product segment within its stock price target computations for NVIDIA.
NVIDIA $NVDA price-target raised to $204 (from $169) at Truist Securities, implying +54% upside.
Analyst Will Stein expects Nvidia to announce a client-side CPU in 2025, which would unlock an additional $35 billion in TAM:
"Incrementally constructive on AI dominance & client…
— Stock Talk (@stocktalkweekly) December 16, 2024
Truist Securities analyst, Will Stein, dropped a bombshell today by pegging expectations of an entirely new product segment to NVIDIA's 2025 projections:
"We believe NVDA will announce a client-side CPU during 2025, opening up an additional ~$35B TAM."
The analyst remains "incrementally constructive on [NVIDIA's] AI dominance & client CPU," while noting that the stock has proven to be a "home-run investment over the last two years owing to a new wave of AI demand."
Stein expects 2025 to be another "constructive" year for NVIDIA due to the opening up of its CPU-related TAM and continuing market dominance via its full technology stack:
"All relevant industry contacts support the dominance and superiority of NVDA's full technology stack (not just chips...or servers...or even server racks...but especially software and pre-trained models)."
Accordingly, the analyst has raised his price target for NVIDIA shares from $169 to $204, implying a ~54 percent upside potential relative to the current price level.
Meanwhile, as we recently reported, NVIDIA's next-gen "Blackwell Ultra" GB300 AI servers are expected to debut by mid-2025. Despite suffering initial setbacks from several minor design flaws, NVIDIA's Blackwell architecture is slated for significant expansion in 2025, as per the trend that can be gleaned from the GPU manufacturer's supply chain partners.
This dovetails with recent reports that suggest ongoing discussions between NVIDIA and TSMC to manufacture Blackwell GPUs in the latter's Arizona facilities. Bear in mind that the outgoing Biden administration recently awarded TSMC $6.6 billion in new funding to incentivize its production facilities in Arizona, where commercial activities are currently slated to commence in the first half of 2025.
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