NVIDIA (NVDA) Price Target Raised to $240 by Barclays, Named ‘Most Attractive’ AI Stock

NVIDIA Corporation (NASDAQ:NVDA) is one of the Buzzing AI Stocks on Wall Street. On September 25, Barclays reiterated the stock as “Overweight” and raised its price target to $240 per share from $200. The firm believes Nvidia is the ‘the most attractive name in our space.’

Analyst Tom O’Malley believes more than $2 trillion in announced AI infrastructure spending will eventually filter into the company’s results.

“When tracking AI capacity additions over the [last twelve months], AI [total addressable markets] don’t seem so outlandish anymore and NVDA looks like the most interesting name in our group.”

In the beginning, analysts were skeptical when Jensen Huang predicted that the AI industry would be worth $1 trillion by the end of the decade. However, now it is so much bigger and analysts view over $2 trillion of planned AI spend.

Of that, an estimated 65-70% of it will be on computing power and networking spend and more deals expected soon.

The firm contends that even though some of the investment will go to custom silicon, Nvidia remains the clear AI winner. Analysts have launched an AI capacity tracker to monitor deployments and call nvidia the most attractive name in the space with revenues likely to climb significantly over the years.

“Given the variation of data available for each project, we used both the conversion of 1GW=$50-60B of total spend and used the more recent 1M GPU per 2GW associated with the OpenAI deal announced last week. When summed, this equates to $1.5T of compute & networking spend and 19M GPUs, which we acknowledge isn’t perfectly pro-forma. We also acknowledge that some of these dollars will go towards custom silicon but in the tracked announcements thus far there is little reference to any specific programs. We introduce an AI capacity tracker that aggregates announced compute deployments, power, and chips that we will update real time and offer to clients. We see this as a positive for all accelerator names (AVGO + AMD) but we see this largely flowing into the NVDA P&L over the next 5+ years, moving numbers materially higher and making this the most attractive name in our space. We move our price target to $240.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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