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Key Takeaways
- Nvidia shares rose Monday as analysts lifted their price targets for the stock.
- UBS analysts upgraded their price target for Nvidia stock to $150 from $120, citing “exceedingly robust” demand for the Blackwell platform.
- The analysts said projected demand for Blackwell is “materially larger than just two months ago” as big tech companies announce increased spending to invest in artificial intelligence.
- Wolfe Research analysts also lifted their price objective to $150 from $125.
Nvidia (NVDA) shares climbed Monday as analysts lifted their price targets for the stock, citing “exceedingly robust” demand for the chipmaker’s upcoming Blackwell platform.
Shares of Nvidia surged over 3% to above $130 before paring back some gains in early trading Monday after UBS analysts boosted their price target for the stock to $150 from $120, while Wolfe Research analysts lifted their objective to $150 from $125.
‘Exceedingly Robust’ Demand for Nvidia’s Blackwell
UBS analysts reported supply chain checks indicated “demand momentum for Blackwell rack-scale systems remains exceedingly robust” as Nvidia works to strengthen its supply.
They added that demand for Nvidia’s data center components is “in part being driven by the enhanced power efficiency” amid concerns about power constraints affecting artificial intelligence (AI) computing.
Wolfe Research analysts also said their expectations improved as “recent supply chain checks show a path to 50%+ content growth for NVDA GPUs” in 2025.
Big Tech’s Rising AI Spend Supports Demand Growth
UBS analysts said the order pipeline for Nvidia’s data center computing units is “materially larger than just two months ago as hyperscaler budgets for C2025 firm up.”
Microsoft (MSFT), Alphabet (GOOGL), Meta (META), and Amazon (AMZN) have told investors they are increasing capital expenditures to invest in AI infrastructure, with Goldman Sachs analysts projecting that big tech companies are set to collectively spend over $1 trillion on AI over the next five years.
The UBS analysts highlighted Microsoft as a top customer for Nvidia’s Blackwell AI data center components.