AI Stock to Buy Hand Over Fist Before It Surges by 60%, According to 1 Wall Street Analyst

Nvidia (NASDAQ: NVDA) has been the undisputed king of AI stocks, with its stock price surging nearly eightfold since the launch of OpenAI's ChatGPT in late 2022. However, one Wall Street analyst believes that another AI stock could be poised for an even more impressive run. According to Rosenblatt Securities, the stock of a leading AI chipmaker could surge by as much as 60% in the coming months.



The analyst, Hans Mosesmann, has set a price target of $220 for the stock, which would imply a valuation of well over $5 trillion. This price target is significantly higher than the current market valuation of the stock and the average price target set by other Wall Street analysts. So, what specific factors contribute to this bullish outlook?

First and foremost, the company has consistently posted impressive top-line results, with revenue growth of 93.6% in the most recent quarter. Earnings per share (EPS) have also grown by almost 109% during the same period, handily beating consensus estimates. This strong financial performance is a testament to the company's ability to capitalize on the growing demand for AI hardware and services.



Another key factor driving the analyst's bullish outlook is the company's Blackwell GPU architecture. This new technology offers a significant performance increase for LLM inference compared to the company's previous H100 Tensor Core GPU. The demand for these chips has been described as "staggering" by the company's CFO, Colette Kress, and is expected to drive further growth in the coming quarters.

However, it's important to note that the company's ability to reach the analyst's price target will depend on several factors, including the broader AI market's performance and the company's ability to secure repeat orders from big cloud providers and enterprise clients. If AI companies continue to receive significant funding and come out of their funding rounds with higher valuations, they will likely have enough cash to continue buying expensive GPUs from the company, driving further revenue growth.



In conclusion, while Nvidia has been the clear beneficiary of the AI wave, another AI stock could be poised for an even more impressive run. According to one Wall Street analyst, the stock of a leading AI chipmaker could surge by as much as 60% in the coming months, driven by strong financial performance and innovative technology. However, investors should keep an eye on the broader AI market and the company's ability to secure repeat orders from big cloud providers and enterprise clients to assess the likelihood of this price target being reached.