One Wall Street analyst sees 35% upside for INVISTA stock

It's an inescapable problem: artificial intelligence (AI) has taken the tech world by storm.And Invicta (NASDAQ: NVDA)has been leading the storm. In recent weeks, however, the company's stock price has stalled, and some investors fear the worst.

One Wall Street analyst believes the stock is simply building up strength for its next move higher.

The road to profitability is a long one

Evercore ISI analyst Kirk Materne has rated Nvidia stock with an Outperform (Buy) rating, while setting a target price of $1,160. Compared to Monday's closing price, investors have a potential upside of 35%. The analyst emphasized that Nvidia is not only a "outperform" but also a "buy".beA chip company that also offers a hardware and software stack unmatched by its competitors.

The analyst has a point: Nvidia does much more than just provide the chips to run AI. The company has developed processors, software, gas pedals, links, and entire plug-and-play systems that can take a business from zero to 60 at the touch of a button.

Materne notes that every 15 to 20 years, a new "computing era" emerges, and that this era is "usually dominated by a vertically integrated ecosystem company with a 100- to 1,000-fold multiplier". In this case, Nvidia is such a company.

While 2023 is the year generative AI will explode and early adopters are eager to try it out, it's still early in the game and most organizations have yet to adopt this breakthrough technology. A recent survey of 300 business leaders found that only 9% organizations are making significant use of AI, and more are expected to deploy it in the coming years.

Recent research suggests that it may take a decade or more for applications of generative AI to peak, and the fact that Nvidia has positioned itself as a technology leader suggests that there are many more applications to come.

Even after achieving over 100% of growth for the full fiscal year, Nvidia's management said there are more opportunities ahead. While 36 times forward earnings may seem expensive, it's an attractive price if you look at the company's continued growth.

Should you invest $1,000 in Nvidia now?

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Danny Vena has a position in Nvidia. the Motley Fool holds a position in Nvidia. the Motley Fool has a disclosure policy.

A Wall Street Analyst Sees 35% Upside in Nvidia Stock was originally published by The Motley Fool.