Nvidia’s stock has seen remarkable growth, climbing over 10 per cent in the past month, more than 80 per cent in the last six months, and exceeding a 1300 per cent increase over the past five years. Despite this surge, Loop Capital believes there is still room for further gains. Loop Capital is a research and brokerage firm. Nvidia specialises in graphics processing units (GPUs) and other technologies.
The firm has reiterated a ‘Buy’ rating and increased its price target to $US350, up from $US250. Analysts Ananda Baruah and Alek Valero anticipate a substantial ramp-up in Nvidia’s GPU shipments, potentially doubling within the next 12 to 15 months. They also expect to see benefits from average selling price (ASP) expansion and networking attachments.
Baruah and Valero suggest that Nvidia could reach $US400, driven by a price-to-earnings ratio of 30x on estimated earnings per share of $US14.00 in calendar year 2027. This projection does not even factor in the potential impact of software contributions. Near 2pm in New York, Nvidia’s stock was up 3.5 per cent to $US209.67.
Loop Capital’s analysis suggests that Nvidia is entering a ‘Golden Wave’ of Gen AI adoption. This wave is expected to generate stronger-than-anticipated demand, similar to what was observed between 2023 and 2024. The firm believes Nvidia is well-positioned to capitalise on this upcoming surge in demand.
