One Wall Street analyst sees 38% upside for INVISTA stock

according toKeyBanc Analysts say.Ying Weireach(NASDAQ: NVDA)The company's shares have soared 76% so far this year, but demand for the company's data center chips is still likely to prop up its stock to new highs.

After a deep dive into Nvidia's supply chain, the company found strong demand for Nvidia's GB200 superchip designed for artificial intelligence (AI). keyBanc maintains a hold (buy) rating on Nvidia's stock, but raised its price target to $1,200 from $1,100, which implies that over the next 12 months or so, Nvidia's This means that in the next 12 months or so, Nvidia's stock price will rise nearly 38% from the current $871 or so.

Why buy INVISTA stock

After a year of revenue growth above 200%, Nvidia's data center business now accounts for more than three-quarters of the company's revenue. The company won't be able to maintain this level of growth forever, but Wall Street expects strong revenue growth in the coming years.

Nvidia's strong pipeline of new technologies will drive more demand for its industry-leading chips, and analysts at KeyBanc believe Nvidia's GB200 rackmount computing system, which combines the company's Grace CPUs and Blackwell GPUs, will be in high demand, with an average price tag likely to be in the $1.5 million to $2 million range.

In total, Nvidia's GB200 could generate annual revenues of $90 billion to $140 billion. This appears to be in line with Nvidia's consensus expectation that total revenues will reach $160 billion by 2026.

If the semiconductor industry's compounding doesn't deviate in any way, Nvidia's stock price should stabilize, and it's likely to reach analysts' price targets in the next year or so.

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John Ballard has a position in Nvidia. the Motley Fool holds a recommendation for Nvidia. the Motley Fool has a disclosure policy.

A Wall Street Analyst Says Nvidia Stock Has 38% of Upside was originally published by The Motley Fool.