Shares of NVIDIA Corporation have soared more than 200% over the past year, driven by growing demand for its innovative AI hardware and software solutions. In a bold projection, Rosenblatt Securities analyst Hans Mosesmann now forecasts the semiconductor giant’s market value could reach nearly $5 trillion within the next year, reflecting his bullish stance on the company’s prospects.
Hans Mosesmann, a leading analyst at Rosenblatt Securities, raised his price target for NVIDIA from $140 to a Wall Street high of $200, following the company’s recent 10-for-1 stock split on June 10. The updated price target marks a significant endorsement of NVIDIA’s market potential, with Mosesmann citing the stock’s exceptional performance and future growth drivers. On Tuesday, NVIDIA shares responded to the upgrade, climbing as much as 2.7% to hit new intraday highs.
NVIDIA’s impressive rally, which has added over $2 trillion to its market capitalization this year, is attributed to its dominant position in powering data centers with cutting-edge AI computing technology. The Santa Clara, California-based company has become a cornerstone in the semiconductor industry, supplying essential components for advanced AI applications across various sectors.
Mosesmann, who has maintained a buy rating on NVIDIA since initiating coverage in 2017, highlights that “the real narrative lies in the software that complements all the hardware goodness.” He predicts that NVIDIA’s software offerings will become increasingly integral to its overall sales mix, enhancing the company’s long-term valuation due to their sustainability and recurring revenue potential.
“We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability,” Mosesmann elaborated in his client note. This shift towards software underscores NVIDIA’s evolving business model, which aims to capture a larger share of the rapidly growing AI market through comprehensive, end-to-end solutions.
NVIDIA has garnered overwhelming support from the analyst community, with 64 buy ratings, seven holds, and just one sell rating, according to Bloomberg. The stock’s popularity is a testament to its robust financial performance and strategic vision, which has positioned it as a frontrunner in the tech sector. As of Monday’s close, NVIDIA shares have risen 165% in 2024, positioning the company to potentially unseat Microsoft and Apple as the world’s most valuable firm.
For further details on NVIDIA’s market trajectory and analyst projections, read the full report on Fortune.