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NVIDIA Stock Will Skyrocket 38% to $800, According to This Analyst

By Joe Tenebruso - May 6, 2021 at 4:44PM

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Is he right?

NVIDIA (NVDA -4.92%) is set to dominate the artificial intelligence (AI) market in the coming years.

So says Baird analyst Tristan Gerra. On Tuesday, he placed an outperform rating and $800 price forecast on NVIDIA's stock. Gerra's price target represents potential gains to investors of roughly 38% from the stock's current price near $580. 

A person is holding out a an upwardly sloping digital stock chart.

Analysts at Baird see plenty of upside for NVIDIA's shareholders. Image source: Getty Images.

NVIDIA's leadership in AI positions the tech titan for continued success, according to Gerra. AI computing will be "the most transformational technology of our era," he said. 

Gerra also praised NVIDIA's wide competitive moat. He argues that the markets NVIDIA has come to lead have barriers to entry that are among "the highest and longest-lasting within the semiconductor industry." Thus, NVIDIA's sales and profits should be well insulated from the competition. 

Will NVIDIA's stock price hit $800? 

NVIDIA has a massive growth opportunity in booming markets such as gaming, 5G communications, and cloud computing, among others. AI has the potential to reshape these and other industries. NVIDIA's role as a key enabler of these global trends should help it generate impressive profit growth well into the coming decade.

Its stock price, in turn, appears set to rise not just to $800 per share, but likely much higher in the years ahead.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

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