The tech sector is abuzz with excitement as Nvidia’s stock surges 4% on Tuesday, marking its fifth consecutive day of gains. Top Wall Street analysts from firms like KeyBanc, Citi, and Bernstein have reaffirmed their bullish stance on the company, citing its impressive sales outlook for fiscal year 2025. KeyBanc has upgraded its revenue forecast to $130.6 billion, driven in part by the expected $7 billion contribution from Nvidia’s revolutionary Blackwell AI chips in the fourth quarter.
Demand for Nvidia’s prior AI chip models, the H100s and H200s, remains extremely strong, according to KeyBanc. The company’s shares have skyrocketed nearly 14% over the past week and a staggering 190% from last year. Wedbush analysts point to a potential new wave of funding for AI startups as another positive catalyst for Nvidia, following OpenAI’s massive $6.6 billion funding round.
This influx of new investments is expected to fuel demand for Nvidia’s AI chips, further solidifying its position in the market. The company is also working to showcase its AI software capabilities at its AI Summit in D.C. this week, demonstrating its value beyond hardware.
In a significant development, Foxconn has announced plans to build the world’s largest factory assembling Nvidia’s AI servers in Mexico, reducing the company’s reliance on China amid rising trade tensions. The move is seen as a major vote of confidence in Nvidia’s AI chips, with Foxconn’s chair citing “crazy” demand for the latest models.
The broader semiconductor sector is also thriving, with sector-wide sales rising 28% in August from last year, according to JPMorgan. The PHLX Semiconductor Index and the tech-heavy Nasdaq both gained over 1% on Tuesday, while chipmakers in China faced a decline following disappointing economic stimulus measures.
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