Nvidia ‘stands in a league of its own when it comes to software and AI solutions,’ Rosenblatt analyst says
Analysts remain overwhelmingly bullish on Nvidia Corp.’s shares despite a near tripling of the stock price so far this year, and their average price target implies about 20% upside from here.
Rosenblatt Securities analyst Hans Mosesmann, however, sees room for a far more dramatic rally. He lifted his price target on Nvidia’s stock NVDA, -0.33% to $800 late Wednesday, writing that he expects the company to deliver a beat-and-raise report when it posts earnings next week, even as Nvidia appears unable to meet all of the furious demand for its artificial-intelligence hardware.
Mosesmann’s prior price target of $600 already solidified him as one of the most bullish analysts covering Nvidia within FactSet’s database, but the $800 target places him second, behind only Warren Lau of Aletheia Capital, who has a $1,000 target, according to the service.
Nvidia “remains one of our top plays as the company stands in a league of its own when it comes to software and AI solutions,” Rosenblatt’s Mosesmann wrote in his Wednesday note. He thinks Nvidia is a “high-conviction story thriving amid uncertainty given secular AI, autonomous driving, and metaverse tailwinds.”
In his view, the company “can overcome hardware specification challenges and drive recurring software revenue streams.”
Mosesmann’s new price target is based on a 35-times price-to-earnings multiple applied to a fiscal 2026 earnings-per-share estimate in low-$20 territory. That’s “warranted by NVDA’s best-in-class software capabilities enabling multi-year earnings expansion even as competition intensifies,” he wrote, as the company’s moat and growth potential don’t seem “fully reflected” in the stock price.
The $800 target implies more than 80% upside from Wednesday’s closing price of $434.86.
Analysts have been parading in with increasingly bullish views of Nvidia this week, and Mosesmann wasn’t alone in doing so overnight. Oppenheimer’s Rick Schafer also lifted his price target on Nvidia’s stock late Wednesday, though in less dramatic fashion — to $500 from $420.
Supply is “a curb on near-term growth,” Schafer said, but Nvidia is the “purest scale play on AI adoption,” and he likes the long-term story.