In an Nvidia (NVDA 6.18%) research note published on Wednesday, Tigress Financial analyst Ivan Feinseth maintained the firm's "buy" rating on the market-leading artificial intelligence (AI) company. More strikingly, he increased his one-year price target on the stock from $790 per share to $985.
In his coverage, Feinseth stated that Nvidia looks poised to retain dominance in advanced graphics processing units (GPUs) and accelerated processing technologies that are powering data centers and the AI revolution. In addition to powerful demand tailwinds in the data center segment, Tigress Financial also expects that Nvidia's gaming business will see strong growth as users continue to value higher levels of visual fidelity.
With Nvidia currently trading at roughly $777 per share, should investors follow Feinseth's recommendation and buy the red-hot AI stock?
Investors can still score big profits with Nvidia stock
Tigress Financial's new price target for Nvidia suggests it could climb an additional 27% in the near-term, even though the GPU leader has already more than tripled in the past year.
But there are good reasons to think it can continue to climb higher. As Feinseth stated in his recent note on the stock, AI is at a tipping point, and Nvidia is at the forefront of this incredible technological transformation. With AI poised to have major impacts across every industry imaginable, the semiconductor company could enjoy sustained tailwinds for its revenue and cash flow growth.
After growing sales 265% year over year to close out fiscal 2024, Nvidia is guiding for revenue in its first quarter to grow about 234% to $24.0 billion. The company's hot streak isn't over yet.
For long-term investors seeking top AI plays, Nvidia stock remains a compelling buy.
