TLDR:
- Nvidia’s stock has risen over 20% in the past 5 weeks
- Demand for Nvidia’s new Blackwell AI chip is described as “insane”
- Analysts project an average 12-month price target with 14% upside potential
- Nvidia’s GPUs remain the gold standard for AI model training and operation
- The AI revolution is still in its early stages, with Nvidia at the center
Nvidia, the leading chip manufacturer at the forefront of the artificial intelligence revolution, has seen its stock price soar over 20% in the past five weeks.
This surge comes as demand for the company’s latest AI chip, Blackwell, reaches unprecedented levels, with CEO Jensen Huang describing it as “insane.”
The company’s recent stock performance has been driven by several factors, including the introduction of its Blackwell GPU architecture in March 2024. This new platform promises to “power a new era of computing,” offering significant improvements in efficiency and performance compared to its predecessor, the Hopper platform.
Major tech companies, including Alphabet, Amazon, Meta Platforms, Microsoft, Oracle, and OpenAI, have already announced plans to incorporate Blackwell into their operations.
Nvidia’s dominance in the AI chip market remains unchallenged, with its GPUs continuing to be the preferred choice for training and running AI models.
This position has led to optimistic projections from Wall Street analysts, who see further growth potential for the company’s stock. The average 12-month price target for Nvidia reflects an upside potential of nearly 14%, according to LSEG data.

Morgan Stanley, which named Nvidia as a “Top Pick,” notes that the company’s Blackwell GPUs are sold out for the next 12 months. Analyst Joseph Moore emphasized that “every indication from management is that we are still early in a long term AI investment cycle.”
However, the company’s rapid growth has not been without challenges. Recent reports suggest that the U.S. government may impose caps on exports of advanced AI chips to certain countries in the Middle East, which caused a temporary pullback in Nvidia’s stock price.
Despite these potential hurdles, many analysts remain bullish on Nvidia’s prospects. Out of 38 analysts surveyed by LSEG in October, 22 recommended the stock as a “buy” or “strong buy.” This optimism is rooted in the belief that the AI revolution is still in its early stages, with Nvidia well-positioned to maintain its central role in the industry.
The company’s upcoming earnings report, which has yet to be officially scheduled, will be closely watched by investors and analysts alike. While Nvidia’s growth rate may slow compared to the previous year’s extraordinary performance, expectations remain high for continued strong results, particularly in the data center segment.
Nvidia’s performance has also had a ripple effect on other chip stocks. Following Taiwan Semiconductor Manufacturing Company’s (TSMC) strong earnings report, shares of Nvidia and other chip manufacturers saw gains in premarket trading.
TSMC, a key player in the production of advanced chips, reported a 54% increase in net profit, further validating the robust demand in the AI chip sector.
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