Nvidia Set for $9 Billion Surge as UBS Sees Bright Future Ahead

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UBS analysts have expressed strong confidence in Nvidia's potential for explosive growth, predicting $9 billion in sales for the upcoming Blackwell chipset in January, nearly double previous estimates. This optimistic forecast comes despite recent market concerns, which UBS labeled as "overblown."

The rapid transition from Nvidia's Hopper to Blackwell systems is credited with accelerating their market position. UBS notes that despite supply chain challenges, Nvidia’s innovative revenue recognition strategy is facilitating smooth inventory flow. Additionally, Blackwell rack shipments are already being deployed, led by Hon Hai, with Quanta set to ramp up operations soon.

UBS maintains a price target of $185 for Nvidia, reflecting unwavering belief in the company’s growth trajectory. They emphasize that the Blackwell systems signify more than just a product launch; it represents a significant shift in Nvidia’s market landscape. As Nvidia continues to establish dominance in AI and data centers, with strong demand from hyperscalers, analysts suggest that investors should prepare for noteworthy developments throughout 2024 and beyond.

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