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NVIDIA is ending 2024 on historically strong footing, and 2025 could be just as auspicious if the GPU maker can live up to Wall Street’s lofty expectations. Today, Truist Securities raised the bar for counting expected value by incorporating an entirely new product segment into its price target calculation for NVIDIA.
Trust Securities raised the NVIDIA $NVDA price target to $204 ($169), implying +54% upside.
Analyst Will Stein expects NVIDIA to introduce client-side CPUs in 2025, which he expects will generate an additional $35 billion in TAM.
“Becoming progressively more constructive regarding AI advantages and clients…
— Stock Talk (@stocktalkweekly) December 16, 2024
Trust Securities analyst Will Stein made a bombshell today by tying his predictions for an entirely new product segment to NVIDIA’s 2025 forecast.
“NVDA will announce client-side CPUs in 2025, and we believe we will see approximately $35 billion in additional TAM.”
The analyst said the stock has proven to be a “home run investment over the past two years due to the new wave of AI demand,” although he said it is “gradually constructive on[NVIDIA’s]AI leadership and client CPUs.” He pointed out.
Stein expects 2025 to be another “constructive” year for NVIDIA, with the opening up of CPU-related TAM and continued market dominance with a complete technology stack.
“All of our relevant industry contacts support the advantages and advantages of NVDA’s complete technology stack (not just chips, but even servers and server racks…particularly software and pre-trained models). Masu.”
Therefore, the analyst raised the price target on NVIDIA stock from $169 to $204, suggesting an upside potential of up to 54% compared to current price levels.
Meanwhile, as we recently reported, NVIDIA’s next-generation “Blackwell Ultra” GB300 AI server is expected to debut by mid-2025. Despite early setbacks due to some small design flaws, NVIDIA’s Blackwell architecture is scheduled for significant expansion in 2025, according to trends that can be gleaned from GPU manufacturers’ supply chain partners.
This coincides with recent reports suggesting that NVIDIA and TSMC are in ongoing talks to manufacture Blackwell GPUs at their Arizona facility. Note that the outgoing Biden administration recently awarded TSMC $6.6 billion in new funding to encourage production facilities in Arizona. Commercial activities are currently scheduled to begin there in the first half of 2025.
