1 Wall Street analyst believes Nvidia stock will reach $175. Is it a buy for about $140?

Nvidia (Nasdaq: NVDA) It dominated much of the conversation among investors in 2024 as the stock rose 171% during the year. And it was for good reason, as revenues and profits skyrocketed, with many major tech companies scrambling to acquire Nvidia’s advanced chips for artificial intelligence (AI) data centers.

CEO Jensen Huang just delivered the keynote at the CES conference in Las Vegas, where he provided updates on Nvidia’s latest advanced semiconductor chips and other products. This news prompted one Wall Street analyst to recommend buying Nvidia stock. Oppenheimer analyst Rick Schaefer sees another 25% upside from recent levels Price target Valued at $175 per share.

Hwang’s presentation at CES was not what some analysts expected. Many expected him to provide more details about the sales of Blackwell’s latest devices GPU (graphics processing unit) architecture.Or insight into Rubin’s next-gen platform. But Huang instead looked beyond that.

In the nine months ended October 27, 2024, Nvidia derived more than 87% of revenue from its data center segment. This is not surprising as large scale companies are racing to build data centers full of advanced Nvidia chips.

But the Oppenheimer analyst pointed to other areas the Nvidia CEO has discussed as growth engines move forward. “Robots and automobiles are increasing AI market opportunities. The administration has highlighted the need for three computing systems in the robotics/automotive space,” Schaefer wrote in his memo, according to reports.

Nvidia also unveiled a new generation of gaming GPUs. Schiffer noted Nvidia’s focus on offering industry-specific options, including NVIDIA NIM for manufacturing. Other enterprise solutions are large language models (LLMs) called Nemotron and NeMo. These are cloud-based frameworks for creating synthetic data to train other MBAs or build AI agents for autonomous vehicles, robotics, and other applications.

It’s clear that Nvidia’s solutions are just starting with its GPU hardware. Huang even introduced a new desktop supercomputer currently called Project DIGITS. It is scheduled to be released in May and is aimed at academics and researchers who do not have the massive computing power of a data center at their disposal. All of these opportunities make buying Nvidia at recent prices.

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