NVIDIA Corporation (NASDAQ: NVDA) stock was trading higher in pre-market trading on Monday following a bullish move from UBS analysts.
UBS analysts have upgraded their outlook on Nvidia (NVDA), setting a new target price of $1,100, up from $800, citing the company’s unique position in the chip market. They underscored Nvidia’s ability to create its own market, distinguishing it from other chip companies.
The bullish sentiment stems from the recent Blackwell launch and insights gained from several sessions at the GPU Technology Conference (GTC).
According to UBS analysts, Nvidia will capitalize on burgeoning demand from sovereign states, particularly in the Middle East (notably UAE and Saudi Arabia) and countries like Sweden, Japan, Korea, and Malaysia. These nations, mentioned in Nvidia’s keynote, are seen as potential equivalents to large US cloud customers in terms of demand.
Moreover, significant projects in regions such as Singapore, Switzerland, France, and others further underscore Nvidia’s growth prospects on a global scale.
UBS Forecasts: Strong Growth for Nvidia
UBS forecasts a robust growth year for Nvidia in calendar 2025, with revenues expected to reach nearly $150 billion, reflecting around 30% growth.
Analysts commented that introducing new pre-packaged and pre-trained modular AI models (NIMs) alongside Blackwell “should also accelerate the distribution flywheel for NVDA’s AI solutions to ride alongside enterprise software.”
They noted,
“The entire framework creates a central distribution structure similar to an app store and given the vast array of companies to potentially license NVDA’s AI Enterprise software ($4500/GPU/yr), monetization can add up quickly.”
Analysts expect the expanded Blackwell product range, including B100 boards and GB200 NVL72 systems, to contribute to its revenue growth potential into 2025.
UBS analysts are considering short-term market downturns as attractive investment opportunities. This perspective comes in the face of ongoing supply concerns and uncertainties about surpassing forecasts in the fiscal third quarter, given the future they envision.
NVIDIA (NASDAQ: NVDA) Stock Reaction
NVDA stock rose 3.12% to close at $942.89 on Friday. The traders had exchanged hands with 58,671,936 (58.67 million) shares compared to the average daily trading volume of 52.39 million.
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