From Nasdaq: 2024-11-15 05:36:00

Nvidia (NASDAQ: NVDA) has experienced a rollercoaster ride in the past year, with an 828% surge followed by a 27% drop and a recent rebound to new highs. Expectations are high for the upcoming fiscal 2025 third-quarter report, with one analyst calling Nvidia a “must own” stock.

Melius Research analyst Ben Reitzes reiterated a buy rating on Nvidia, with a price target of $185, predicting potential gains of 25%. He compared the anticipation for Nvidia’s next chip to the excitement surrounding Apple’s iPhone releases, calling AI a “once-in-a-lifetime opportunity” for the company.

Nvidia’s CEO Jensen Huang expressed excitement about the demand for the Blackwell chip, indicating a bright future for the company. The market for generative AI is projected to be worth trillions over the next decade, with Nvidia’s chips playing a crucial role in this paradigm shift.

Despite Nvidia’s stock currently selling at 36 times next year’s earnings, its strong track record justifies the premium. The Motley Fool Stock Advisor team did not include Nvidia in their list of 10 best stocks for investors to buy now, but the service has significantly outperformed the S&P 500 since 2002.

Investors may want to consider the long-term potential of Nvidia, given its past performance and future opportunities in the AI market. The views expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: 1 Wall Street Analyst Says Nvidia Is a “Must Own” Because of This “Once-in-a-Lifetime Opportunity”