AI Darling Nvidia's Stock Could Keep Rising After a Record Year. Here's Why.

Core Viewpoint - Nvidia's stock is expected to continue rising due to strong demand for its AI chips, despite recent price corrections [2][8]. Group 1: Analyst Sentiment - Analysts are overwhelmingly bullish on Nvidia, with 20 out of 21 analysts recommending a "buy" or equivalent rating, and an average price target of approximately $177, indicating over 31% upside from the recent closing price of $134.70 [3]. - Morgan Stanley analysts have labeled Nvidia as a "top pick," anticipating the company will maintain its AI leadership due to its substantial R&D budget and strong partnerships with major cloud providers [10]. Group 2: Financial Performance - Nvidia reported record quarterly revenue of $35.1 billion in the fiscal third quarter, with data-center revenue more than doubling year-over-year to reach $30.8 billion [9]. - The company's stock has more than doubled in value in 2024, driven by booming demand for AI chips [4]. Group 3: Upcoming Events and Product Developments - CEO Jensen Huang is expected to deliver a keynote address at the Consumer Electronics Show (CES) on January 6, which could provide a significant boost to the stock [11]. - Analysts from Citi anticipate that Huang may announce higher projections for Blackwell sales and unveil new graphics cards during the CES event [14]. - The company plans to release a new family of chips annually, with details about the successor to Blackwell, named Rubin, expected in the coming months, with a release anticipated in 2026 [12]. Group 4: Market Position - Nvidia is one of only three companies with a market capitalization exceeding $3 trillion, reflecting its strong position in the AI chip market [4]. - The demand for Nvidia's next-generation Blackwell AI system has been described as "staggering," indicating a significant growth opportunity for the company [5].