Nvidia 's still in early growth stages as artificial intelligence capabilities continue to progress, according to Redburn Atlantic.
Analyst Timm Schulze-Melander initiated the stock with a buy rating and a price target of $178, which implies upside of 22.5%.
Looking ahead, the analyst sees the AI powerhouse boasting 65% EBIT margin expansion and compound annual earnings growth of 38% between 2024 and 2030.
The first growth driver is in accelerated computing, which aims to make AI data processing more efficient, Schulze-Melander said.
The second factor behind Nvidia's growth case is the market's underestimation of demand for the company's products and services — even as rivals try to curb the chipmaker's dominance.
Persons:
Timm Schulze, Melander, Schulze
Organizations:
Nvidia