By Nvidia Corp., the powerhouse in the technology industry, continues to defy expectations with its rapid growth. Wall Street analysts are now questioning how long the company can maintain this impressive momentum. However, one Goldman Sachs analyst, Toshiya Hari, stands out with his optimistic outlook.
Hari previously predicted that Nvidia’s data-center revenue would decline in the second half of this year. However, he has now revised his forecast, projecting “consistent growth” throughout the first half of calendar year 2025. This positive projection is driven by several factors.
One key driver of Nvidia’s success is the ever-increasing investment by major cloud service providers in artificial intelligence hardware. Additionally, Hari highlights the expanding customer profile of Nvidia and the company’s exciting lineup of upcoming product cycles.
While there are still debates about Nvidia’s ability to sustain its data-center business beyond 2024, Hari expresses growing confidence in its long-term viability.
In light of this, Hari has increased his price target for Nvidia shares to $800 from $625. He maintains his buy rating and positions the stock on Goldman’s prestigious “conviction” list.
Nvidia’s astonishing growth and promising future make it an exciting prospect for investors and technology enthusiasts alike. With a strong foothold in the market and innovative offerings, Nvidia emerges as a force to be reckoned with.
Big Tech Companies Benefiting from AI
Several major technology companies are reaping the rewards of implementing artificial intelligence (AI) in their operations. Microsoft Corp. reported that 6 percentage points of growth in its Azure cloud-computing business can be attributed to AI. Similarly, Meta Platforms Inc. is experiencing monetization benefits in various areas such as Reels and messaging.
These success stories demonstrate the consistent demand for accelerated computing, as indicated by the data points.
Moreover, Meta has increased its capital-expenditure guidance for the year, signaling that major players in the industry plan to continue investing in AI development.
Nvidia Emerges as the Prime Beneficiary of Meta’s AI Investments
Furthermore, Nvidia is positioned as the primary beneficiary of Meta’s surge in AI spending. As a result, Nvidia’s stock is on the rise.
Additionally, Hari, an industry expert, highlighted Nvidia’s impending product cycles with the H200 and B100. These new releases are expected to further enhance Nvidia’s position in the market.
While AMD is making progress with its MI300 platform, Hari asserts that Nvidia will remain the gold standard in the industry due to its exceptional hardware and software offerings. Furthermore, Nvidia’s commitment to innovation sets it apart from its competitors.
Make sure to stay updated on the latest news regarding AMD’s struggle to meet expectations, which caused a decline in its stock value.
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