Cloud Internet service providers constitute the first wave of buyers of artificial intelligence systems from… Nvidia (NVDA). One Wall Street analyst says the next wave is likely to be sovereign nations. Nvidia shares rose on Friday.
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“Nvidia is on the cusp of a whole new wave of demand from global institutions and sovereigns — with every country potentially as large as a major U.S. cloud customer,” UBS analyst Timothy Arcuri said in a note to clients.
At its GTC 2024 conference this week, Nvidia mentioned Japan, Malaysia, South Korea and Sweden as customers, Arcuri said. He added that the company also mentioned the Middle East market, where Saudi Arabia and the UAE are likely buyers.
This is in addition to the major projects being implemented with Singapore, Switzerland and France.
Nvidia stock rises
Arcuri reiterated his buy rating on Nvidia shares and raised his price target to 1,000 from 800.
In afternoon trading on the stock market today, Nvidia stock rose 3% to 942.18. Nvidia shares have risen for five straight trading days.
The graphics chip maker saw its stock rise this week thanks to news from the GTC 2024 conference.
Arcuri expects Nvidia to achieve sales of $112.5 billion in calendar 2024, up 94% from last year. Analysts polled by FactSet are looking for sales of $105.6 billion this year.
“We now see another strong growth year in calendar 2025 with revenues approaching $150 billion (about 30% growth),” he said. Wall Street is targeting sales of $131.5 billion next year.
Nvidia stock is on five IBD stock lists: Bahraini dinar 50leaderboard, Big hat 20, Sector leaders And technology leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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