Nvidia stock is drawing fresh bullish calls after the chipmaker became the first company in history to surpass a $5 trillion market capitalization. Loop Capital Markets raised its price target to a Street-high $350 from $250, flagging more than 70% upside from Nvidia’s last close of $202.49 and implying a potential valuation above $8.5 trillion if the forecast is met.
Key Points
Shares rose about 2% in premarket trading. Year to date, the stock has climbed more than 50%, outpacing the 45% gain in the Philadelphia Stock Exchange Semiconductor Index as investors continue to price in stronger demand for artificial intelligence infrastructure and software.
Loop’s upgrade arrives ahead of Nvidia’s next earnings report on Nov. 19, a catalyst that could either reinforce or challenge the high expectations embedded in the stock. The firm argues that the company is at the front end of a “Golden Wave” of GenAI adoption, with its next-gen Blackwell platform set to expand revenue and margins as supply increases and average selling prices rise.
Why Loop Thinks Nvidia stock Can Go Higher?
Loop Capital’s Ananda Baruah lifted the target to $350 based on three pillars: a sustained AI spending cycle, a rapid production ramp for Blackwell GPUs, and pricing leverage as the product mix moves to higher-performance parts. The firm believes the chipmaker can essentially double unit shipments over the next 12 to 15 months while also benefiting from average selling price expansion, which together support above-consensus revenue and earnings power.
For Nvidia stock, the call reflects confidence that the company remains the core beneficiary of enterprise and cloud AI buildouts. The thesis assumes that the current upgrade cycle is less cyclical than prior data center booms because AI workloads are expanding across more industries and use cases—from training frontier models to serving inference at scale.
Blackwell ramp and demand signals
The Blackwell generation is central to the upbeat view. Loop expects a steep ramp as capacity expands through the supply chain. Separately, Rosenblatt Securities lifted its target to $240 from $215 after hosting a company event, citing what it described as more than $500 billion in Blackwell orders through 2026. While order figures are not formally confirmed by the company, the estimate underscores the scale of interest from large buyers.
Rosenblatt also noted that the firm’s AI platform continues to extend beyond hyperscale data centers into industries such as automotive, healthcare, and financial services. This broadening of end markets could diversify revenue over time, a trend that bulls say strengthens durability.
Market Backdrop: AI Spending Stays Resilient
Major cloud providers—Microsoft, Meta, Alphabet, and Amazon—have reiterated aggressive investment in AI infrastructure. Those commitments help anchor visibility for high-performance GPUs, networking, and software as they race to support larger models and faster inference. That backdrop supports Nvidia stock as investors gauge how much of the capex cycle is already reflected in the valuation.
Importantly, hyperscalers are not the only buyers. Enterprises are experimenting with smaller domain-specific models, while startups are building AI-native services. As deployment shifts from pilots to production, demand may move from lumpy training clusters to steadier, large-scale inference, where energy efficiency and total cost of ownership become key decision points. Nvidia aims to address this with platform-level offerings that include hardware, networking, and software stacks.
What the Street-High Target Implies?
Loop’s $350 price target implies a market value north of $8.5 trillion—trillions above the current level. Achieving that outcome would likely require execution on three fronts: delivery of Blackwell at scale, maintenance of premium pricing, and continued leadership in the full AI stack, including CUDA software, networking, and system integration.
At $202.49, Nvidia stock already reflects exceptional growth expectations. The average sell-side target sits near $231, far below Loop’s projection, which highlights the dispersion of views on how long and how strong the AI cycle will run. Bulls argue that model size, data intensity, and application breadth keep raising the compute ceiling. Skeptics counter that customers could pace spending once early capacity is in place or shift to alternatives as competition improves.
The Mechanics: Supply, Pricing, and Margins
- Supply expansion: Foundry partners and packaging capacity are expected to increase through 2025 to support Blackwell volumes. More supply should help reduce lead times and convert backlogs into revenue.
- Pricing power: New architectures and higher-performance parts typically carry stronger pricing. If average selling prices rise alongside volume, gross margins can stay elevated even as the mix evolves.
- System-level sales: Full-rack and networking solutions can drive larger deal sizes and deepen customer lock-in through software and ecosystem tools.
Liquidity and supply-chain capacity will matter for Nvidia stock as investors judge whether the company can match demand without eroding pricing. Watch for commentary on component availability, packaging constraints, and delivery timelines.
Competitive Landscape and Substitution Risk
Competitors are not standing still. AMD is ramping its own high-end accelerators, while major cloud providers continue to develop custom silicon tailored to their workloads. Open software alternatives and middleware could also make it easier to run models on varied hardware. The company’s counter is a mature ecosystem—spanning CUDA, libraries, and tools—that reduces customer friction and supports quicker deployment. How sticky that moat remains will be a core debate around Nvidia stock over the next several quarters.
Policy, Geopolitics, and Export Constraints
Export controls, especially those limiting advanced chip shipments to certain regions, remain a variable. The firm has introduced modified products to comply with rules, yet shifts in policy can affect mix and timing. Investors will monitor any regulatory updates that could influence data center demand patterns.
What Could Derail the Rally?
Valuation is the classic bear case. After such a historic run, the market may demand flawless execution. Potential pressure points include:
- Slower-than-expected Blackwell ramp or component shortages
- Signs of capex digestion at hyperscalers in 2025
- Rising competition that compresses pricing or share
- Macro softness that delays enterprise AI projects
Key risks for Nvidia stock also include energy constraints for data centers and the availability of skilled talent to deploy AI at scale—factors that influence both customer timelines and budget priorities.
Near-Term Catalysts to Watch
Ahead of Nov. 19 earnings, investors will focus on:
- Data center revenue trajectory and next-quarter guidance
- Color on Blackwell shipments, lead times, and capacity adds
- Commentary on average selling prices and gross margin sustainability
- Software, networking, and full-rack revenue mix
- Customer demand signals from top accounts and newer industries
Ahead of this report, Nvidia stock watchers will also parse updates from large cloud buyers. Any shift in capex plans from Microsoft, Meta, Alphabet, or Amazon can move sentiment quickly.
Reactions Across the Street
The Loop upgrade to $350 set the new Street high, while Rosenblatt’s move to $240 reinforced optimism tied to the Blackwell cycle. Other analysts have stayed more conservative, citing the need for clearer visibility into 2026 supply, potential substitution by custom silicon, and the shape of the inference market. This range of opinions keeps trading active around events and guidance updates, a dynamic familiar to Nvidia stock holders after several quarters of big post-earnings moves.
The Bigger Picture for AI Infrastructure
Whether training or inference, AI remains compute-hungry. As models grow and use cases proliferate—from copilots to multimodal search to AI-driven design—the stack requires not just faster chips, but better networking, memory bandwidth, and software optimization. The company’s strategy is to sell the full platform, capture more of the bill, and reduce complexity for customers. If that approach continues to resonate, bulls argue the company can defend margins even as competition intensifies.
Investor Takeaway
The $350 call from Loop frames the upside scenario: a long AI cycle, a successful Blackwell ramp, and durable pricing leading to another leg higher. The downside rests on the reality check of execution, competitive pressure, and the possibility that some customers pace their spending after heavy 2024–2025 outlays.
Whether Nvidia stock can stretch toward $350 will likely hinge on the next few quarters of delivery and guidance. For now, the combination of record market cap, rising targets, and persistent AI demand keeps the spotlight firmly on the company’s November print and its visibility into 2026.
FAQ’s
What pushed Nvidia past a $5T market cap?
Surging AI infrastructure demand, record data center revenue, and leadership in GPUs, networking, and software. The stock is up 50%+ YTD, outpacing the SOX.
Why did Loop Capital set a $350 price target for Nvidia stock?
Loop sees a “Golden Wave” of GenAI with Blackwell doubling unit shipments in 12–15 months plus ASP gains. That implies 70%+ upside and a value above $8.5T.
What is Blackwell and why does it matter for Nvidia?
Blackwell is Nvidia’s next-gen GPU platform for training and inference with higher performance and system-level offerings. Rosenblatt estimates $500B+ in orders through 2026.
When is Nvidia’s next earnings and what should investors watch?
Nov. 19. Key metrics: data center growth, Blackwell shipment timing, ASPs and gross margins, software and networking mix, and hyperscaler capex signals.
Article Source: Bloomberg
Image Source: NVIDIA Facebook
