Nvidia (NVDA 6.18%) continues to be one of 2024's hottest stocks, having risen roughly 87% year to date as of this writing. Priced at roughly $926 per share, the artificial intelligence (AI) leader has a market capitalization of roughly $2.3 trillion and ranks as the world's third-largest company -- behind only Microsoft and Apple. Some on Wall Street believe that the red-hot AI stock is poised to continue marching higher.

In a research note published on March 22, UBS maintained a buy rating on Nvidia and raised its price target on the stock from $800 per share to $1,000 per share. Based on where the stock is priced as of this writing, that $1,000 target would imply additional upside of roughly 8%.

Investors are excited about Nvidia's AI opportunities

Last week, Nvidia held its annual GPU Technology Conference (GTC) and gave attendees and virtual viewers the rundown on its next-generation Blackwell chips. The company says that it will launch its new processors later this year, and it looks like they will be roughly four times faster than its H100 GPUs that are the current, best-in-class processor being used to run OpenAI's ChatGPT service and its Sora video-generation software as well as applications from other leading AI providers.

In UBS's note, the firm said that it thinks Nvidia is poised to see another swell in demand. In particular, the analysts are excited about the AI leader's opportunity to begin selling processors, software, and services to government customers around the world. UBS anticipates that this catalyst will help Nvidia reach roughly $150 billion in sales in the 2025 calendar year and thinks that any pullbacks for the stock represent a worthwhile buying opportunity.

I agree with the UBS analysts assessment that pullbacks on Nvidia stock should be approached as a buying opportunity. The company already commands a dominant position in the high-end GPU market, and the release of its B200 Blackwell processor later this year looks poised to make the company's competitive edge even stronger. Further adding to that advantage, Nvidia continues to roll out software suites that are strengthening its ecosystem, and there's a good chance it's still in the early stages of benefiting from the rise of AI.