Loop Capital has reiterated its Buy rating on Nvidia (NASDAQ: NVDA) and set a price target of $175 for the stock, citing strong growth potential and an optimistic outlook for 2025 and 2026. The firm believes Nvidia’s future performance will significantly surpass current consensus estimates.
The firm believes that Wall Street is still underestimating the strong commitment of hyperscalers to their investments in generative AI and accelerated computing infrastructure.
Ananda Baruah, a managing director at Loop Capital said in a note,
“Big picture, we believe that 2-3 year Street numbers remain low as our work with both customers and the NVDA build ecosystem points we can see NVDA GPU reaching 10M – 12M.”
Baruah also pointed out that hyperscalers plan to increase their share of non-CPU computing to over 50% in the coming years, a major jump from the current 10%.
While near-term challenges persist, including GB200 rack testing and validation issues, Loop Capital noted that progress is being made. Shipments of HGX B200 systems are expected to ramp up, helping meet growing market demand. The firm anticipates a meaningful ramp in GB200 production starting in May, with run-rate volumes expected by the October quarter.
Baruah also highlighted Nvidia’s (NASDAQ: NVDA) decision to move away from dictating system configurations, instead offering more design freedom to its partners. The analyst said,
“NVDA would like to give even more design freedom back to partners with GB200 next 6 months, and would love to pull the GB3000 into mid-summer if technical qualification is possible.”
Overall, Loop Capital is optimistic about Nvidia’s long-term prospects, pointing to the company’s exposure to two trillion-dollar markets: accelerated computing and generative AI. The firm stresses that these trends are just beginning and could drive significant growth for Nvidia moving forward.
