Key Takeaways
- Nvidia shares have exploded this year, but William Blair analysts say there’s still an upside opportunity.
- The firm believes Nvidia has a one- to two-year lead on its competitors in artificial intelligence.
- All but one of the analysts surveyed by Visible Alpha have a buy rating for Nvidia.
Nvidia’s (NVDA) share price may have already more than doubled in 2024, but analysts at William Blair say it isn’t too late for investors to get in on the fun.
The firm initiated coverage of the semiconductor titan with an “outperform” rating on Wednesday, declaring there’s “still room on this train.”
William Blair notes Nvidia’s data center revenue is expected to more than double in fiscal 2025 after tripling in fiscal 2024. The firm sees Nvidia as the clear frontrunner in the artificial intelligence (AI) space with as much as a one- to two-year lead over its competitors.
For that reason, Nvidia’s GPUs and AI systems should continue to drive industry-leading revenue and earnings growth, the firm said.
Other Analysts Are Similarly Bullish
After Nvidia shares slumped following the company’s second-quarter earnings last month, Bank of America called out an “enhanced buy opportunity,” and Bernstein analysts recently called the company the “best way to play AI.”
All but one of the 23 firms surveyed by Visible Alpha hold a “buy” rating on Nvidia, with an average price target of $151.73. Nvidia shares slipped less than 1% Wednesday afternoon to $114.95, continuing a slight pullback this week after the stock popped last week on encouraging comments from Chief Executive Officer (CEO) Jensen Huang.