Analysts Say Nvidia's (NVDA) Datacenter Opportunity Is Enormous-and the AI Cycle Is 'Stronger for Longer'

NVIDIA Corporation (NASDAQ:NVDA) is one of the Hot AI Stocks to Keep on Your Radar. On November 24, Bernstein reiterated the stock as “Outperform,” saying that it is sticking with the AI chipmaker. The firm believes that it is still one of the top stocks to own with meaningful upside potential.

“The datacenter opportunity is enormous, and still early, with material upside still possible.”

Post Nvidia results, the firm reiterated an Outperform on the stock and raised the price target to $275 from $225.  Analyst Stacy Rasgon noted how CEO Jensen Huang’s commentary has been crucial in restoring confidence amidst AI bubble fears.

The firm believes that Nvidia’s results and reaffirmed “off the charts” AI demand from Jensen will offer investors renewed belief in the “stronger for longer” AI cycle.

“We believe investors were anticipating a good guide given the positive newsflow in the AI space recently (capex trends, partnership announcements, sovereign deals etc). And yet, AI stocks have taken a breather recently on the back of sustainability and “bubble” fears. Hence, more than just good numbers, we believe investors needed some hand-holding from Jensen which he provided in spades given his comments around “off the charts” demand, commentary on the company’s competitive positioning and roadmap, and stark reaffirmation of the likely revenue (and margin) trajectory next year which will probably give investors more confidence to underwrite a “stronger for longer” outlook for AI demand.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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