Nvidia Stock Is Staring Down a New $1 Trillion Opportunity. How Should You Play NVDA Here?
Nvidia (NVDA) shares are inching up on Thursday, April 24 after the artificial intelligence behemoth rolled out a new software platform dubbed 'NeMo' that helps enterprises build custom AI agents.
With the launch of NeMo microservices, the chipmaker wants to strengthen its footprint in autonomous AI agents, which the Wall Street Journal expects will replace enterprise software over time.
Despite today's surge, Nvidia stock is down some 30% versus its year-to-date high.
NeMo Is a Massive Opportunity for Nvidia Stock
NeMo microservices could prove a meaningful tailwind for NVDA this year as 'autonomous AI agents' is an estimated $1 trillion market opportunity.
Plus, being a software platform, it doesn't run the risk of coming in the crosshairs of tariffs or the rising trade tensions between the U.S. and China.
In contrast, Nvidia's chips business stands to lose about $5.5 billion in the wake of escalating trade tensions between two of the world's largest economies in Q1.
Still, Piper Sandler reiterated its 'Overweight' rating on Nvidia shares on Thursday. The firm's $150 price target indicates potential upside of about 45% from current levels.
NVDA Remains a Top AI Pick for 2025
Despite emerging challenges, experts continue to believe in NVDA's long-term potential.
Doug Clinton, the founder and chief executive of Intelligent Alpha, for example, dubbed Nvidia stock a 'top pick' for AI exposure in his recent interview with CNBC.
Clinton believes U.S. hyperscalers will continue to spend on the company's AI chips even if the economy slides into a recession in 2025.
The AI stock remains attractive also because it's going for 24 times forward earnings at the time of writing - well below its average forward price-earnings multiple over the past five years, he added.
Consensus Rating on NVDA Shares Is Still a 'Strong Buy'
Note that other Wall Street analysts remain largely bullish on NVDA as well.
The consensus rating on Nvidia stock currently sits at 'Strong Buy' with the mean target of about $168 indicating potential upside of 60% from here.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
4 hours ago
- National Post
Southwest Power Pool (SPP) Partners with Hitachi to Develop Advanced AI Solution for Critical Power Transmission Reliability and Flexibility Challenges
Article content End-to-end use of industrial AI and advanced computing infrastructure to help significantly speed up safe integration and use of additional energy sources supporting central U.S. power grids. Article content Initial partnership objectives are to reduce generator interconnection analysis times by 80% while facilitating more informed decision-making. Objective to be achieved via advanced AI solutions from Hitachi, powered by NVIDIA's accelerated computing platform. Integrated solution comprised of multiple Hitachi capabilities including an AI-based power simulation algorithm, Hitachi-iQ-accelerated calculations, augmented simulation modelling, predictive analytics, as well as design and engineering services. Wide-ranging impacts to address imminent U.S. energy infrastructure needs by increasing planning processes' speed and efficiency; enabling SPP to better resolve energy capacity shortages, increase grid reliability, and improve emergency response capabilities. Subsequent partnership objectives to address alternative energy integration challenges and power transmission constraints. Article content SANTA CLARA, Calif. & LITTLE ROCK, Ark. — Hitachi, Ltd. (TSE:6501, 'Hitachi') and Southwest Power Pool, Inc. (SPP) today announced a strategic partnership to solve critical and imminent problems slowing the modernization of U.S. energy infrastructure. The partnership will produce an integrated AI-based solution that accelerates generator interconnection (GI) by reducing study analysis times by 80% while also informing faster, higher-quality decision-making by GI customers. This will markedly improve SPP's ability to facilitate the addition of its 14-state region's generating capacity to keep pace with increasing demand for electricity. Article content U.S. energy demands are rising by 2 to 3 percent annually *1, driven by data center growth, expanding manufacturing, and electrification. Data centers alone are projected to consume up to 12 percent *2 of U.S. electricity by 2028, versus 4.4 percent in 2023. Such trends drive an alarming supply and demand gap as generating capacity margins in the SPP footprint could decline from 24 percent in 2020 to just 5 percent in 2029 unless an intervention occurs. Article content That intervention starts with end-to-end technical innovation, first at the point of generator interconnection. Currently, the U.S. generates 1.28 terawatts of power *3. More than twice that generated amount waits in a queue as unusable backlog caused by today's grid interconnect process. The long wait times are due to exhaustive, time-consuming analysis and simulation studies required to ensure that new energy source introductions don't compromise existing grid reliability, stability, or performance. Article content To address this gap, the three organizations will combine their industry and technical expertise. The partnership draws on multiple Hitachi competencies for a complete solution: Method's design services; GlobalLogic's software engineering services; Hitachi Energy's energy portfolio management asset modeling solutions; Hitachi R&D's AI-based energy grid algorithm; and Hitachi Vantara's integrated storage and compute platform Hitachi iQ, built on NVIDIA accelerated computing, networking, and AI software. Article content As the regional transmission organization (RTO) framing the project, SPP will guide the integration of these technical solutions and services, leveraging its deep expertise in energy grid optimization. As a reliability coordinator prioritizing operational and customer experience improvements, SPP's input will also ensure the project outcomes align with industry-wide requirements and regulations. 'Our nation's demand for electricity has risen sharply in recent years following a long period of slow growth. Our industry has struggled to keep up with this sudden and significant shift,' said SPP President and CEO Lanny Nickell. 'There are a lot of would-be power producers out there waiting to connect to the grid, but yesterday's systems and technology haven't been sufficient to enable us to bring incremental capacity online fast enough. It's time to fix that, and SPP is proud to work with Hitachi and NVIDIA, two AI industry leaders who have the means to help realize a vision of a better energy future for our nation.' Article content The integrated solution is an industrial AI system differentiated by its advanced proprietary AI algorithms and high performance enabled by Hitachi iQ's enterprise AI solution stack which sit at its core. Ultimately, dynamic AI-driven technologies will be applied to various study areas, such as: Article content The partnership with Hitachi and NVIDIA runs parallel to other improvements underway at SPP, including a from-the-ground-up reimagining of its transmission planning processes to align them with current and future industry needs. Together, these technological and process innovations are expected to set high-water marks in the electricity industry for generator interconnection, mid- and long-term planning, long-term forecast accuracy, analysis and deployment of additional grid-enhancing technologies, and more. Article content 'This initiative is about reimagining the electricity production and distribution process through the lens of modern AI technology,' said Frank Antonysamy, Chief Growth Officer, Hitachi Digital. 'Real-time data access is needed to create truly realistic scenarios caused by new generator introductions. The AI solution we're all developing will provide that data, among other advantages. SPP can then make significantly quicker, better-informed decisions that will increase overall ROI while better serving the nation's population with accessible power. We're proud to be a part of this important three-way collaboration addressing such a crucial problem.' Article content 'Interconnection process acceleration is critical to meet the unprecedented demand on our grid,' said Marc Spieler, Senior Managing Director of the Global Energy Industry at NVIDIA. 'Using advanced NVIDIA accelerated computing and AI, Hitachi and SPP are helping speed interconnection studies to bring essential infrastructure online faster.' Article content The project's phase one milestones are expected to be completed by winter 2025/26. They include initial systems acceleration, data management processes optimization, and the introduction of AI-augmented simulation modeling among other goals. Article content *1: *2: *3: About SPP Southwest Power Pool, Inc. ( is a regional transmission organization: a not-for-profit corporation mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices on behalf of its members in 14 states. SPP ensures electric reliability across a region spanning parts of the central and western U.S., provides energy services on a contract basis to customers in both the Eastern and Western Interconnections, and is expanding its RTO and developing a day-ahead energy market in the west. The company's headquarters are in Little Rock, Arkansas. Article content About Hitachi, Ltd. Article content Article content Article content Contacts Article content Media Contacts Article content Article content Heather Ailara Article content Article content PR Manager Article content Article content Hitachi Digital (NA and EU) Article content Article content +1-973-567-6040 Article content Article content heather@ Article content Article content
Globe and Mail
6 hours ago
- Globe and Mail
2 AI Growth Stocks That Could Help Set You Up for Life
The artificial intelligence (AI) market has grown like a weed over the past decade. That rapid expansion -- which was fueled by more sophisticated cloud computing services, large language models, and generative AI applications -- lit a blazing fire under some high-growth tech stocks. The most obvious winners are Nvidia, the world's top producer of discrete graphics processing units (GPUs) for processing AI tasks; and Microsoft, which acquired a big stake in OpenAI and integrated the start-up's AI tools into its own services. But there are still plenty of other under-the-radar AI growth plays that might have more upside potential. Let's look at two of them: Credo Technology (NASDAQ: CRDO) and Arm Holdings (NASDAQ: ARM). Credo Technology Credo, which went public in 2022, sells a wide range of high-speed connectivity solutions for the data center, cloud, and AI markets. Its core products include data transfer chips, digital signal processors, line card components, and active electric cables for data centers. From fiscal 2022 to fiscal 2025 (which ended this May), Credo's revenue grew at a compound annual growth rate (CAGR) of 60%. It also turned profitable for the first time in fiscal 2025. Credo attributed that growth to the rapid expansion of the cloud and AI markets, which drove its hyperscale customers to aggressively upgrade their data center infrastructure. Its biggest customer -- widely believed to be Microsoft -- accounted for 39% of its revenue in fiscal 2024. That customer concentration isn't ideal, but it also isn't surprising considering how much Microsoft is prioritizing the expansion of its cloud and AI ecosystems. Its other major customers include Amazon and Tesla. From fiscal 2025 to fiscal 2027, analysts expect Credo's revenue to rise at a CAGR of 47% as its earnings per share (EPS) increase at a CAGR of 113%. That rapid growth could be driven by the continued expansion of the AI market, and a shift toward higher-speed ethernet connections that will spur demand for its new optical modules. There's also rising demand for its "chiplet" designs, which are more modular, customizable, and scalable than monolithic system on chips (SoCs), which merge together multiple chips on a single die. It isn't cheap at 64 times this year's earnings, but it could have plenty of room to run over the next few decades. Arm Holdings Arm is a U.K. chip designer which was acquired by Japan's SoftBank in 2016 and spun off again in a second IPO in 2023. It develops power-efficient CPUs that consume less power than the x86 CPUs produced by Intel and AMD. That makes Arm's chips well-suited for smartphones, tablets, Internet of Things (IoT) gadgets, connected vehicles, and even some notebook computers and servers. Its chip designs are now installed in approximately 99% of the world's smartphones, and most of its growth over the past few years has been fueled by its AI-optimized Armv9 designs. Arm's revenue rose 24% in fiscal 2025 (which ended this March), and analysts expect that figure to grow at a CAGR of 21% over the next three years. Its EPS, which surged 159% in fiscal 2025, is expected to grow at a CAGR of 41% through fiscal 2028. Arm originally only generated its revenue by licensing its designs to chipmakers like Qualcomm, MediaTek, and Apple instead of producing its own chips. But earlier this year, it announced that it would start developing its own first-party chips and outsource its production to Taiwan Semiconductor Manufacturing. That surprising move would boost Arm's operating expenses and turn it into a direct competitor for some of its top clients. But it could also undercut other Arm-based chips because it doesn't need to pay any royalties or licensing fees for its own designs. Its first-party brand recognition could also make it a more appealing option than third-party Arm-based chips for OEMs. Arm's stock certainly isn't cheap at 113 times this year's earnings, but it could be a great long-term play on the market's growing demand for more power-efficient AI chips. Should you invest $1,000 in Credo Technology Group right now? Before you buy stock in Credo Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Credo Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon and Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Microsoft, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
7 hours ago
- Globe and Mail
These Catalysts Could Propel Nvidia Stock Higher
As data center growth inevitably slows in future years, these categories could drive revenue for Nvidia (NASDAQ: NVDA). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » *Stock prices used were the afternoon prices of June 2, 2025. The video was published on June 4, 2025. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
