Loop Capital Says NVIDIA (NVDA) Is Entering a 'Golden Wave' of Gen AI

NVIDIA Corporation (NASDAQ:NVDA) is one of the  10 AI Stocks Making Waves on Wall Street. On June 25, Nvidia stock hit a record high to reclaim the title of being the “world’s most valuable company”. On that note, Loop Capital has deemed that the chipmaker is set to ride a “Golden Wave” of artificial intelligence.

The firm lifted its price target for the stock to $250 from $175, while maintaining its “Buy” rating.

“Our work suggests we are entering the next ‘Golden Wave’ of Gen AI adoption and NVDA is at the front-end of another material leg of stronger than anticipated demand.” -Loop Capital analyst Ananda Baruah.

In a research note, the analyst told investors how their work on the supply chain suggests that hyperscale and AI factory Gen AI and AI accelerator compute spending “alone” could accelerate to about $2T by 2028 using current compute economics.

While Loop understands that this implies a $6T market cap for Nvidia, it contends that “the math just works” as the market enters the next “golden wave” of Gen AI.

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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Disclosure: None.