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Nvidia (NASDAQ:NVDA) had its price target raised more than 25% by the analysts at Benchmark as demand for its high-tech hardware powering the artificial intelligence phenomenon shows no signs of slowing.
Benchmark reiterated its Buy rating and boosted its price target to $170 from $135. Nvidia slipped 5.5% on Thursday as tech stocks across the board suffered losses. Still, Nvidia shares have catapulted nearly 160% since Jan. 1.
“Benchmark had the opportunity to host Nvidia for a Fireside Chat discussion with investors, where it came away with increasing conviction that the company is well positioned to continue its leadership of the AI industry, with above expected revenue and earnings growth for the foreseeable future,” said Benchmark analyst Cody Acree in a note.
Despite some of Nvidia’s customers working to develop their own silicon, the Jensen Huang-led juggernaut is not worried. Cloud providers such as Google (GOOG)(GOOGL), Microsoft (MSFT) and Amazon (AMZN) are all in various stages of designing their own AI-oriented chips and processors.
“Most notable was the company’s consistent conviction that its jointly planned customer demand continues to outstrip its increasing ability to fully supply, and that its growth outlook is unfazed by the growing cadence of its customers’ internal silicon efforts, with room expected for both systems within customer’s expanding capital budgets,” Acree added.
Nvidia’s H200 and Blackwell models remain on track to ramp up during the second half of this year, while demand is expected to outpace supply well into 2025. Revenue from Blackwell is expected to materialize during the third quarter, and be globally available for data centers the following quarter, Benchmark noted.
Nvidia has a Hold rating from Seeking Alpha analysts, but a Strong Buy rating from Wall Street analysts. Seeking Alpha’s Quant system, which routinely beats the market, rates it a Hold.