Initially seen as a gaming hardware company, Nvidia’s (NASDAQ:NVDA) groundbreaking AI advancements have led to a remarkable surge of more than 300% over the past two years. This sort of move has been driven by continued strong demand for high-performance chips and GPUs, of which Nvidia stock is the clear market leader.
While some anticipate a downturn after recent rapid growth, the introduction of Nvidia’s Blackwell AI chips might sustain upward momentum. KeyBanc’s John Vinh and other analysts foresee further gains, projecting NVDA stock could reach $1,200 amid solid demand for Nvidia’s Blackwell platform and other high-performance chips and GPUs as well.
Assuming Nvidia stock maintains AI dominance and robust metrics, projections suggest its sales could reach $300 billion by 2027. With Nvidia’s current and consistent upward trajectory, Nvidia’s shares could double or triple in the coming months. Wall Street anticipates Nvidia’s sales to reach $102 billion next year, and $300 billion in 2027.
Let’s dive into whether these forecasts are achievable, and what to make of this stock’s long-term potential.
The Release of GeForce RTX 5090
Nvidia recently revealed plans to release its highly anticipated next-gren GeForcer RTX 59 series, with its RTX 5090 and RTX 5080 chips expected on the horizon. These chips should come alongside a 10% price hike, as experts expect Nvidia to gain even more dominance in the AI GPU world.
Expected to arrive by the fourth quarter of 2024, the RTX 50 series will boost shipments for AIB partners. This will drive higher average prices. Although the price for the RTX 5090 is still not released, its high speed performance expects to attract users of high-performance GPUs, with even greater market share gains likely as a result.
AI Center in Indonesia
Nvidia has also recently partnered with the Indonesian government and Indosat Ooredoo Hutchison to establish a $200 million AI center in Surakarta. Setiadi, the country’s communication minister, mentioned that the center would focus on telecommunications or human resources. Construction starts in 2024, a date which was picked to align with the region’s 5G infrastructure readiness plans.
In January 2022, Nvidia committed to training over 20,000 university students and lecturers in AI skills under an agreement with the Indonesian government. The center is aimed to enhance Indonesia’s AI workforce. This deal will expand Nvidia’s presence in Southeast Asia, following a surge in demand for generative AI tools. Collaborations include a data center with Singtel in Singapore and an AI center with the Singapore Institute of Technology.
NVDA Stock Remains a Long-Term Buy
Nvidia’s Blackwell platform is hailed as a significant advancement in AI technology, and it has garnered attention from analysts for its ambitious scope. Alongside Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) were designated partners for deploying this groundbreaking hardware.
In partnership with Nvidia, Alphabet initiated a program to aid startups in expediting the development of generative AI applications and services. Selected members of Nvidia Inception, the chipmaker’s startup initiative, were eligible to receive up to $350,000 in Google Cloud credits.
These sorts of partnerships widen Nvidia’s already wide moat, derived from its hardware and software product excellence. Over the long-term, I do think Nvidia stock has the potential to maintain its massive lead over the competition. As a decade-long potential holding, I don’t think investors can go wrong owning this stock at current levels.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.