NVIDIA Corp (NASDAQ:NVDA) has the potential to see its stock price surge by 81% in the next year, according to a recent note by Evercore ISI.
What Happened: Evercore ISI initiated Nvidia with an “Outperform” rating and set a price target of $1,160, representing a 36% potential upside from the current levels, reported Business Insider.
In a bullish scenario, the firm suggested that the stock could potentially reach $1,540, an 81% increase from the current levels.
The note highlighted Nvidia’s position as a leader in the AI ecosystem, a role that is expected to drive efficiency gains for years to come.
Evercore ISI’s Mark Lipacis believes that Nvidia’s AI ecosystem play could capture 80% of the value created during its respective computing era, with the potential to dominate the parallel processing market by 2030, a market that could be worth more than $350 billion.
“We think investors underestimate 1) the importance of the chip+hardware+software ecosystem that Nvidia has created, 2) that computing eras last 15-20 years and are typically dominated by a single vertically integrated ecosystem company, whose returns are measured in 100-to-1000 bagger range,” Lipacis said.
“We believe that the Tectonic Shift to the current Parallel Processing / IoT Computing Era started ...