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Nvidia’s market capitalization has surged to approximately $3.77 trillion, reclaiming the title of the world’s most valuable company. But according to one Wall Street analyst, the AI chip giant still has a long runway ahead.
Loop Capital analyst Ananda Baruah, in a fresh note to investors, has significantly raised his price target for Nvidia, pegging it at $250 per share – a move that would translate to an eye-watering $6 trillion market cap for the company.
Baruah frames his bullish outlook around what Loop’s research suggests is “the next ‘golden wave’ of general AI adoption,” positioning Nvidia at the forefront of “another wave of robust demand” that surpasses expectations.
This optimistic assessment has driven Loop Capital to set the highest price target on Wall Street, reaching $250.
Baruah forecasts that spending on generative AI and AI-accelerated computing could reach a staggering $2 trillion by 2028, driven by demand from hyperscale cloud providers, sovereign AI initiatives, emerging cloud service providers, and enterprises across the board.
Further solidifying the growth narrative, hyperscale cloud providers are actively shifting away from solely CPU-based computing models. Non-CPU computing is projected to account for 50% to 60% of total installed computing capacity by the end of the current cycle, a significant jump from the 12% seen at the start of this year.
Moreover, the imminent full-scale production of Nvidia’s Blackwell chips, anticipated in the October quarter, coupled with rapidly growing demand for inference and AI factories, provide a compelling foundation for Nvidia’s future continued expansion.
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