Oppenheimer Remains Bullish on Nvidia (NVDA) Amid Expanding AI Demand
Nvidia Corporation (NASDAQ:NVDA) is one of the top 10 picks from Harvard University's stock portfolio. As of the end of Q1 2025, Harvard Management Co.'s portfolio indicates that the position in the stock has reduced by approximately 36% quarter-over-quarter to 507,831 shares (around 5% portfolio's weight).
On June 16, Oppenheimer analyst Rick Schafer reiterated his Outperform rating on Nvidia (NASDAQ:NVDA), maintaining a price target of $175. His outlook reflects continued optimism around Nvidia's central role in the AI infrastructure buildout, supported by recent insights from company leadership during Oppenheimer's 23rd Annual Semiconductor Bus Tour and discussions with Nvidia's CFO Colette Kress and IR Director Stewart Stecker.
Management is actively engaging with global policymakers to support sovereign AI infrastructure, a market Nvidia estimates could exceed $1.5 trillion in total addressable opportunity. Europe alone could account for $120 billion of that market, with demand generally scaling in line with GDP. According to Schafer, these discussions reinforce Nvidia's first-mover advantage in the AI ecosystem.
Looking ahead, Nvidia expects large-scale AI data centers, or 'AI factories', to emerge within the next two to three years. A single gigawatt-scale facility could represent a $40–$50 billion market for Nvidia, with early deployments anticipated by 2027 and broader multi-gigawatt buildouts by 2028.
Nvidia's AI revenue currently skews 60/40 between training and inference, but management expects inference to gain ground. The company's full-stack approach — combining GPUs, networking, and software — remains well suited to both workloads, positioning it competitively as AI use cases diversify.
Schafer also highlighted NVLink Fusion, Nvidia's new interconnect technology, which allows customers to mix CPU architectures (e.g., x86 alongside ARM-based Grace CPUs) without performance trade-offs, potentially broadening Nvidia's addressable market.
While U.S. restrictions on AI chip exports have impacted sales to China, prompting a $4.5 billion write-down, management views the exposure as manageable, with China now contributing less than 5% of total revenue.
In summary, Schafer continues to see Nvidia as a leader in the AI space, backed by product strength, global momentum, and a deep pipeline of long-term opportunities.
Nvidia Corp. (NASDAQ:NVDA) is a leading innovator in the design and production of graphics processing units (GPUs), system-on-a-chip (SoC) solutions, and AI-driven hardware and software. The company's GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None.
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