‘Golden Wave Coming,' Says Top Analyst as Nvidia's Price Target Hits Street-High $250

Business Insider

7 hours ago

Nvidia (NVDA) soared to a fresh record on Wednesday, jumping over 4% to close at $154.30 and reclaiming the title of the world's most valuable company. But Loop Capital says this is just the beginning. In a new call, Top analyst Ananda Baruah of Loop Capital raised his price target from $175 to a Street-high $250, citing stronger-than-expected demand across the AI landscape. Baruah believes Nvidia is at the center of what he calls a 'Golden Wave' of generative AI adoption—and that demand is running 'so much larger than you think.'
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Loop's $250 target implies a possible $6 trillion market cap, an eye-popping number, but the firm said it's backed by strong data and fast-growing profits. If that view holds, Nvidia may be positioned at the front of the next leg of the AI-driven market rally.
AI Spending Could Surge to $2 Trillion by 2028
Loop Capital believes that spending on generative AI compute—driven by hyperscalers, sovereign AI projects, and rising AI factory demand—could grow to $2 trillion by 2028. While the number may seem bold, analyst Baruah said that 'the math just works.' He pointed to a steady ramp-up in investments from cloud giants and governments, which puts Nvidia in a strong position to benefit.
Fueling the optimism is Nvidia's new Blackwell chips, which are set to reach full production volume by the October quarter. These chips are made for advanced AI tasks, especially reasoning models, which need much more power than earlier AI models.
As more companies build AI factories and run bigger workloads, demand for Blackwell is rising quickly. With this strong start, the analyst believes that Nvidia's lead in the AI chip race is only growing stronger.
Why Loop Still Sees Room to Run
Even after a strong rally, Loop Capital thinks Nvidia's stock still looks cheap. It trades at about 30 times expected earnings, which is lower than its five-year average of 40, according to LSEG data. That's because NVDA's profits have been rising faster than the share price.
The firm also notes that Nvidia has jumped more than 60% since April, as investors return to AI stocks. They believe Nvidia is not just riding the AI wave—it's driving it. If the company keeps growing at this pace, Loop sees a $250 share price and a $6 trillion valuation as realistic.
What Is Nvidia's Stock Forecast?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, four Holds, and one Sell assigned in the last three months. At $175.28, the Nvidia average share price target implies a 13.59% upside potential.