UBS Keeps Buy Rating on NVIDIA, Sees Huge Revenue Potential

On Tuesday, June 3, UBS analysts maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $175.

The firm’s analysts highlighted NVIDIA Corporation’s (NASDAQ:NVDA) strong potential in the data center sector, especially because of its upcoming large AI infrastructure projects.

UBS analysts pointed out that the corporation has insight into “tens of gigawatts” of AI infrastructure projects in the near future. The analysts expect that even a conservative estimate of 20 gigawatts could mean a revenue opportunity of at least $1 trillion. This is based on NVIDIA Corporation’s (NASDAQ:NVDA) expected revenue range of $40-50 billion per gigawatt.

Although the company did not give a specific timeline for these projects, UBS analysts believe these could be deployed in over 2 to 3 years. This suggests that NVIDIA Corporation (NASDAQ:NVDA) could see about $400 billion in data center revenue annually, which would be twice as much as the company’s current projection for 2026.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.