TLDR:
- Evercore ISI believes Nvidia stock could soar 81% as investors realize its potential as an AI ecosystem.
- Nvidia has transformed into an AI ecosystem play and could generate $69 per share in earnings power by 2030.
Full Article:
Evercore ISI recently initiated coverage on Nvidia stock, highlighting its potential for significant growth. The firm believes that Nvidia is no longer just a chip company but has evolved into an AI ecosystem play. This transformation has the potential to generate $69 per share in earnings power by the year 2030.
Despite a 200% surge in Nvidia’s stock price over the past year, Evercore sees further upside potential. The firm has set a price target of $1,160, representing a 36% increase from current levels. In a bullish case scenario, Evercore suggests that Nvidia’s stock could reach $1,540, marking an 81% jump.
Evercore’s Mark Lipacis emphasizes the importance of Nvidia’s chip+hardware+software ecosystem, which is often overlooked by investors. Lipacis argues that Nvidia is a leader in a new computing platform that will drive efficiency gains for years to come. This positioning as an AI ecosystem play could allow Nvidia to capture 80% of the parallel processing market by 2030, potentially leading to an earnings power of $69 per share.
Lipacis further suggests that Nvidia is at the forefront of a tectonic shift towards the current parallel processing/IoT computing era. As the dominant ecosystem play in parallel processing, Nvidia stands to generate significant returns for its investors in the coming years.