nvidia stock: supply boost expected amid surging ai demand

2025-02-20 nvidia

san francisco, Thursday, 20 February 2025.
nvidia’s stock is showing resilience. analysts anticipate increased chip supplies just before the earnings report on february 26. keybanc analysts have already raised their price target to $190. taiwan’s ai supply chain is gearing up for a boom driven by deepseek. morgan stanley forecasts a 32% growth in cloud infrastructure spending for 2025. despite competition, demand for nvidia’s blackwell gpus continues to outstrip supply, with wedbush estimating 10% to 15% of it budgets being allocated to ai in 2025.

analyst optimism and market forecasts

Nvidia’s Q4 earnings report is due next week, with management setting a revenue target of $37.5 billion [4]. Analysts predict a slightly higher figure of $38.03 billion [4]. Earnings per share (EPS) are expected to rise 61.224 to $0.79 [4]. Fiscal year 2026 EPS is forecast to see a 43.7% surge, reaching $3.98 [4]. UBS expects strong Q4 results and Q1 guidance, maintaining a “buy” rating with a $185 target [4]. The ai chip stock’s mean price target is $177.55, suggesting a potential rally of 27.9% [4]

competitive landscape and supply dynamics

Samsung is making strides in ai chip supply, potentially challenging Nvidia’s dominance [3]. Nvidia currently controls approximately 80% of the global ai chip market [3]. Samsung anticipates improved HBM3E sales in the fourth quarter and plans to expand sales to multiple customers [3]. Despite competition, demand for Nvidia’s Blackwell GPUs is far outpacing supply [7]. Baird’s supply chain meetings dismiss concerns around Nvidia’s GB200 mix for the year, expecting it to dominate in the second half of 2025 and into 2026 [6]

ai investment and growth drivers

The Stargate project is expected to attract up to $500 billion in investments over the next four years, with $100 billion already deployed [5]. This project could imply rapidly growing market demand for high-performance ai hardware [5]. Wedbush analysts expect capital expenditures from major companies to increase significantly in 2025 [7]. This growth is driven by it departments focusing on building large-scale ai systems [7]. Demand for China’s H20 GPUs is rebounding due to DeepSeek [5]

nvidia’s market position

Nvidia stock remained above the 50-day moving average on Thursday [1]. Nvidia’s shares have increased by 477% in the last three years [4]. Nvidia’s q3 earnings on November 20, 2024, beat estimates [4]. Revenue reached $35.1 billion, up 94% year over year, with data center revenue growing 112% to $30.8 billion [4]. Non-GAAP EPS doubled to $0.81 [4]. Nvidia’s market capitalization stands at $3.4 trillion [4]

Bronnen

nvidia supply earnings forecast