Nvidia (NASDAQ: NVDA) stock has a lot of momentum right now due to the company’s success on the artificial intelligence (AI) front. Given this momentum, many investment firms have pencilled in $250 as their medium-term share price targets.
Not Loop Capital though. Its analysts reckon the tech stock can get to $350, meaning they see the potential for gains of around 85% from here.
Nvidia’s role in the AI revolution
I can see why analysts at Loop Capital are bullish on Nvidia. Because the chip company recently held an AI conference, ‘GTC Washington DC’, and it was quite extraordinary.
At this event, Nvidia CEO Jensen Huang outlined his vision for his future. He sees a world in which AI is everywhere (AI agents, self-driving cars, robotics, etc) and data centres (powered by Nvidia GPUs) as ‘AI factories’.
If Huang’s vision plays out, Nvidia’s likely to get much bigger in the long run. Because the world’s likely to be running on its GPUs.
Of course, his vision may not play out. But he’s been right about AI up to now (he saw this revolution coming long before other tech CEOs) so I wouldn’t bet against him.
Huge demand for its chips
It’s worth pointing out that at the GTC event, Huang touched on demand for Nvidia’s Blackwell GPUs. It’s currently very high, with six million GPUs shipped in the first three-and-a-half quarters of production.
Looking ahead, Huang expects $500bn in GPU sales over the next five quarters, split between Blackwell and its next-generation Rubin chips. Given that Nvidia’s sales for the year ending 31 January 2026 are expected to be around $207bn, we’re potentially looking at a phenomenal level of near-term growth.
GPU shipments to double?
Going back to Loop Capital, its analysts believe Nvidia will double its GPU shipments over the next 12-15 months. And they reckon average selling prices are likely to increase from here, resulting in a double boost to the company’s revenue.
“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and Nvidia is at the front-end of another material leg of stronger-than-anticipated demand.”
Loop Capital
That said, they did highlight some potential risks to their bullish thesis. These include real estate and power constraints as well as regulation that impacts generative AI revenue generation.
My take on the stock
Personally, I remain bullish on the stock (it’s one of my largest holdings). I’m targeting a share price of $250 in the medium term.
However, it’s had a big jump over the last six months or so. Given this jump, it may not be the best stock to look at today (ie there may be better risk/reward opportunities in the market).
Personally, I like to buy this tech stock on the dips. I’ll be looking to buy more shares for my portfolio if it falls back below $170 or so.
But others here at The Motley Fool could have different views.
