While the short-term equity traders are panicking over Nvidia’s (NASDAQ: NVDA) recent post-earnings cooling down to the $209 range, institutional research firms are advising their clients to look at the broader multi-year horizon. Loop Capital Markets analyst Ananda Baruah gave Nvidia stock a ‘strong buy’ rating with a robust upside price target.
The analyst predicted that Nvidia stock is on the way to reach the $350 mark. He provided three reasons as to why NVDA would hit the mentioned target. His reasoning revolves around the growing AI tech infrastructure, which the company has capitalized on, that could take it well into the finishing line.
The 3 reasons why Nvidia stock is on its way to breach the $350 level, according to Loop Capital Markets are:
- The entire tech sector is entering the golden wave of the next-gen AI technology that would be another hyperscaler, and the GPU maker is at the top of the chain.
- The volume surge of GPU shipments is projected to double in the next 12 to 18 months, wrote Baruah in his note to clients. This could propel NVDA further as it enters 2027.
- The average selling price of a GPU is skyrocketing as demand for the chip is surging in data centers. His note highlighted that a single GPU’s price has jumped from $26,000 to an astronomical $33,000.
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Nvidia Stock’s Bullish Thesis Can Generate 68% Profits
All of these benefit Nvidia in the long run and can catapult its stock price to a new high. The next high, according to the price prediction, is the $350 target. That’s an uptick and return on investment (ROI) of approximately 68% from its current price of $209. Therefore, an investment of $1,000 could turn into $1,680 if the forecast turns out to be accurate. That’s phenomenal returns with a profit of up to $141 per share that can swell a trader’s portfolio.
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