Internet cloud service providers have been the initial buyers of artificial intelligence systems from Nvidia, but a Wall Street analyst predicts that the next wave of buyers will be sovereign nations. According to UBS analyst Timothy Arcuri, Nvidia is on the verge of experiencing a new surge in demand from global enterprises and sovereigns, with each sovereign potentially as significant as a large U.S. cloud customer. This projection comes in the wake of the GTC 2024 conference where Nvidia highlighted potential customers such as Japan, Malaysia, South Korea, Sweden, Saudi Arabia, United Arab Emirates, Singapore, Switzerland, and France.
As Nvidia stock rose by 3% to 942.18, Arcuri reiterated his buy rating on the stock and raised his price target to 1,000 from 800. The company’s shares have seen consistent growth over five consecutive trading days, fueled by positive news from the GTC 2024 conference. Analysts are forecasting that Nvidia could generate sales of $112.5 billion in calendar year 2024, representing a 94% increase from the previous year. The company’s long-term growth outlook is also promising, with Arcuri predicting revenue approaching $150 billion in calendar year 2025, reflecting a 30% growth rate.
Nvidia’s stock has been performing well and is currently featured on five IBD stock lists, including IBD 50, Leaderboard, Big Cap 20, Sector Leaders, and Tech Leaders. The company’s strong position in the market, coupled with its advancements in AI technology, has attracted significant attention from investors. With a positive outlook for future sales and an expanding customer base, Nvidia seems poised for continued success in the rapidly evolving technology industry.