Nvidia Stock Could See 81% Upside By 2025, Says Evercore ISI: 'Only In The Beginning Phases Of Generating Outsized Returns'

NVIDIA Corp (NASDAQ:NVDA) has the potential to see its stock price surge by 81% in the next year, according to a recent note by Evercore ISI.

What Happened: Evercore ISI initiated Nvidia with an “Outperform” rating and set a price target of $1,160, representing a 36% potential upside from the current levels, reported Business Insider.

In a bullish scenario, the firm suggested that the stock could potentially reach $1,540, an 81% increase from the current levels.

The note highlighted Nvidia’s position as a leader in the AI ecosystem, a role that is expected to drive efficiency gains for years to come.

Evercore ISI’s Mark Lipacis believes that Nvidia’s AI ecosystem play could capture 80% of the value created during its respective computing era, with the potential to dominate the parallel processing market by 2030, a market that could be worth more than $350 billion.

“We think investors underestimate 1) the importance of the chip+hardware+software ecosystem that Nvidia has created, 2) that computing eras last 15-20 years and are typically dominated by a single vertically integrated ecosystem company, whose returns are measured in 100-to-1000 bagger range,” Lipacis said.

“We believe that the Tectonic Shift to the current Parallel Processing / IoT Computing Era started 5-to-8 years ago, and that NVDA is the dominant ecosystem play in parallel processing, which is only in the beginning phases of generating outsized returns for its investors,” Lipacis said.  

See Also: Crypto Markets Tumble Following Iran’s Drone Attack Against Israel, Investor Warns Of Continued Selloff

Despite recent market dips, market commentator Jim Cramer has maintained his confidence in Nvidia, noting that the stock still holds significant growth potential.

Read Next: Elon Musk Reacts As Marc Andreessen Says Google Is ‘Literally Run By Employee Mobs’ With ‘Chinese Spies’ Scooping Up AI Chip Designs

Image Via Shutterstock

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.