UBS analysts lifted their target price on Nvidia (NASDAQ:NVDA) to $1,100 from $800, highlighting it is “the only chip company that can create its own market.”
“Following the Blackwell launch and having attended several sessions at GTC, we believe NVDA sits on the cusp of an entirely new wave of demand from global enterprises and Sovereigns,” analysts said.
They suggest that each sovereign state, notably those in the Middle East (specifically UAE and Saudi Arabia), along with Sweden, Japan, Korea, and Malaysia, mentioned in Nvidia’s keynote, could match the demand of a large US cloud customer.
Further, significant projects in other regions like Singapore, Switzerland, France, and more are also noteworthy.
UBS now anticipates a strong growth year in calendar 2025 for NVIDIA, with revenues nearing $150 billion, marking approximately 30% growth, leading to increased estimates and a price target.
The introduction of new pre-packaged and pre-trained modular AI models (NIMs) alongside Blackwell “should also accelerate the distribution flywheel for NVDA's AI solutions to ride alongside enterprise software,” analysts commented.
“The entire framework creates a central distribution structure similar to an app store and given the vast array of companies to potentially license NVDA's AI Enterprise software ($4500/GPU/yr), monetization can add up quickly.”
The chipmaker’s expanded Blackwell product range, including B100 boards and GB200 NVL72 systems, promises increased revenue potential into 2025.
Despite ongoing supply concerns and uncertainties about beating forecasts in the fiscal third quarter, UBS analysts view any short-term market declines as appealing investment opportunities “given what we think is still out in front of us.”