Nvidia (NASDAQ: NVDA) Stock prices have recently reversed course after months of seemingly rising without a breather. The stock is now trading nearly 13% below last month’s intraday high of more than $140 per share.
There is a Wall Street analyst who believes that shares of the artificial intelligence (AI) leader will soon recover and even surpass their all-time highs. Morgan Stanley Analyst Joseph Moore issued a new note on Nvidia on Monday, raising his price target to $144 per share from $116. Moore based that stock price on what he sees as a jump in earnings per share (EPS) through next year. Moore thinks Nvidia stock is worth buying, as his new price target would represent a gain of about 17.5% from the current price.
Nvidia’s “compelling story”
After data checks pointed to strong demand in China and Taiwan, as well as the U.S., Moore raised his EPS estimate for the semiconductor giant to $3.34 per share from $2.94 for next year. Moore believes Nvidia “remains the most compelling story in AI [semiconductor] space, and as we move from H100 to H200 and then Blackwell, the visibility and backlog will improve significantly.”
That last point is key to investing in Nvidia right now. Even after the recent correction, Nvidia shares were up ahead of the revenue and profit growth. In other words, further growth is already priced into the stock price to some extent.
But even as Nvidia prepares to begin mass shipping of its new Blackwell AI platform, its H100 and H200 graphics processing units (GPUs) are still in high demand. That’s because many of Nvidia’s customers have been lining up to get their hands on these powerful computing chips, which are necessary for training generative AI models.
Those sales will remain strong even as shipments of the new Blackwell chip accelerate. That’s why investors should still feel comfortable buying Nvidia stock. Even after the huge gains, there’s a strong base of sales and an even stronger pipeline of new AI products on the horizon.
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Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Is Nvidia Stock Headed to $144? 1 Wall Street Analyst Thinks So. was originally published by The Motley Fool
