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On Wednesday, Raymond (NSE:RYMD) James restated a strong endorsement for NVIDIA stock (NASDAQ:NVDA), maintaining a Strong Buy rating and a $170.00 price target. The semiconductor giant, currently trading at $115.43 with a market capitalization of $2.8 trillion, enjoys broad analyst support with a consensus rating of 1.34 (Strong Buy). According to InvestingPro analysis, NVIDIA is currently trading near its Fair Value, with analyst targets ranging from $130 to $220. The firm’s analyst highlighted the CEO’s optimistic view on the future of data center capital expenditures, projecting they could surpass $1 trillion by 2028. The CEO’s keynote address emphasized NVIDIA’s growth prospects in Inferencing, Agentic AI, and Robotics. This optimism is supported by the company’s impressive 114.2% revenue growth and perfect Piotroski Score of 9, as reported by InvestingPro, which indicates exceptional financial strength and operational efficiency.
NVIDIA’s management is confident that the potential of AI scaling laws remains largely underestimated. They argue that advanced reasoning models, such as DeepSeek R1, will require over 100 times more computational power compared to traditional pre-trained models. The analyst noted that demand for Blackwell, NVIDIA’s product, remains robust, primarily driven by the top four cloud service providers. However, there was an acknowledgment that the presentation slide related to this was slightly perplexing.
Regarding new products, the analyst reported that NVIDIA is on schedule to ship Blackwell Ultra in the second half of 2025, and the transition is expected to be smooth. Additionally, the Vera Rubin NVL144 is set for release in the second half of 2026, and the Rubin Ultra NVL576 is anticipated for the second half of 2027. These products are said to offer performance specifications that are likely to be challenging for competitors to match.
NVIDIA also announced new CPO switch solutions for scaling up networks, which met market expectations. The analyst concluded that after reviewing the company’s long-term AI demand and innovation roadmap, the firm’s confidence in NVIDIA’s market position remains steadfast. The affirmation of the Strong Buy rating comes as the firm looks forward to an investor Q&A session with NVIDIA’s management the following day.
In other recent news, NVIDIA has been making significant strides across various sectors. OpenAI’s $100 billion Stargate infrastructure project will house up to 400,000 of NVIDIA’s AI chips in a data center complex in Texas, expected to be operational by 2025. Oracle (NYSE:ORCL) and NVIDIA have partnered to enhance enterprise AI applications, integrating NVIDIA’s computing with Oracle’s AI infrastructure, making over 160 AI tools available through the Oracle Cloud Infrastructure. Additionally, NVIDIA and Alphabet (NASDAQ:GOOGL) have expanded their collaboration to advance AI applications in healthcare, manufacturing, and energy, with initiatives like embedding digital watermarks in AI-generated content.
NVIDIA has also launched its Omniverse Blueprint for Earth-2, aimed at improving weather forecasting accuracy, with industry leaders using it to develop AI-augmented solutions. Furthermore, NVIDIA is establishing a quantum research hub in Boston to integrate quantum computing with AI supercomputers, collaborating with pioneers like Quantinuum and academic institutions such as Harvard and MIT. This hub will focus on addressing complex quantum computing issues and developing hybrid computing solutions. These developments reflect NVIDIA’s ongoing efforts to advance AI and quantum technologies across multiple industries.
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