Shares of Nvidia (NVDA +4.00%) rallied (again) on Friday, jumping as much as 4.9%. As of 2:32 p.m. ET, the stock was still up 1.7%.
The rally followed yesterday's blockbuster financial report, which propelled Nvidia to new heights. After digesting the results and after adjusting his models, the self-professed "most bullish analyst on Nvidia" has issued a new price target.
NASDAQ: NVDA
Key Data Points
A new, Street-high price target
Rosenblatt analyst Hans Mosesmann, the self-professed "most bullish analyst on Nvidia," maintained his buy rating on the stock while increasing his price target to a Street-high $1,400. That suggests potential upside of more than 78% -- on top of the stock's 437% gains since the beginning of 2023.
While there wasn't any new commentary forthcoming, Mosesmann has previously called Nvidia's triple-digit revenue growth "unprecedented" and suggested that the stock is "just getting started."
He also said CEO Jensen Huang "made the case that [in] looking at the data center installed base of $1 trillion, most of it will shift to accelerated computing from general purpose compute for generative AI models (training and inference)."
Is there more to come?
Mosesmann is likely onto something.
In the conference call to discuss Nvidia's results, Huang reiterated that view, saying, "Fundamentally, the conditions are excellent for continued growth [from] calendar '24 to calendar '25 and beyond."
He pointed to two secular tailwinds that he believes will continue to drive growth. First, the "transition from general to accelerated computing." He argues, "There's just no reason to update with more CPUs" when GPUs are more energy-efficient and cost-effective. Second is the speed and computing horsepower necessary to run generative artificial intelligence applications. Nvidia is at the intersection of both those trends.
If we are, as Mosesmann believes, on the cusp of a $1 trillion data center upgrade cycle, that represents a massive opportunity. Furthermore, Nvidia controls an estimated 95% of the data center GPU market, according to CFRA analyst Angelo Zino.
We're still in the early innings of each of these transitions. This puts Nvidia in the driver's seat for years to come.
