Nvidia's 'iPhone Moment': Can the Stock Still Rise 26%?

 

Hey everyone! So here’s the latest buzz around Nvidia. Melius Research said selling Nvidia stock now would be akin to selling Apple stock after the release of its first iPhone. Some analysts have raised the stock target to $185, which is about a 26% jump from where it is now. For context, Nvidia’s stock has been on fire this year, skyrocketing by more than 200%, and it's already up nearly 800% since OpenAI launched ChatGPT in November 2022. They’ve become one of the most valuable companies in the world, with a market cap over $3.5 trillion.

 

Ben Reitzes, the Managing Director over at Melius, is really bullish on Nvidia, comparing the company’s current position to where Apple was before the iPhone’s release. He’s basically saying that selling Nvidia now would be like dumping Apple stock back in 2007, after the first iPhone was released. If Blackwell and the new Hopper chips (which power AI advancements like ChatGPT and self-driving cars) take off, Nvidia could hit even higher highs. Plus, Reitzes believes that large-scale cloud companies, sovereign nations, and enterprises are all looking to pour more investment into Nvidia’s AI chips.

 

Now, to me, the hype around Nvidia is very real. They’re sitting at the center of the AI revolution, with their GPUs powering a lot of the breakthroughs we’re seeing in AI and machine learning. Blackwell and the upcoming Rubin platform look poised to keep Nvidia ahead of the curve. But let's be honest, a 26% price target hike isn't exactly a small move. The stock is already pretty inflated, especially with its near-200% rise this year alone.

 

It’s a bit tricky when you’re looking at a stock that’s grown so much so quickly. On the one hand, Nvidia is absolutely dominating in a space that’s only going to get bigger—AI and cloud computing are the future, and Nvidia has positioned itself as a key player. On the other hand, there’s always the risk of the market getting too ahead of itself. A lot of the good news is already priced in. Sure, Blackwell could be the next big thing, but there’s a lot of future growth already baked into the stock, and you have to wonder if that future is priced to perfection.

 

So here’s where I land: Nvidia is definitely a company to watch, and if you’re already in, you’re probably feeling pretty good right now. But for anyone thinking about jumping in at these levels, I'd be a bit cautious. The stock is hot, but it’s also expensive. If the Blackwell GPUs live up to the hype and AI demand continues to soar, Nvidia could still have a lot of room to grow. But with valuations this high, there’s less room for error.

 

What’s your take? Is Nvidia still a buy? #nvidia