Truist Securities analyst Will Stein projects that NVIDIA will enter the client-side CPU market in 2025, potentially unlocking a total addressable market (TAM) of around $35 billion. This new product segment is a key factor in their raised stock price target for NVIDIA.
NVIDIA's Client-Side CPU Plans
According to Will Stein from Truist Securities:
“We believe NVDA will announce a client-side CPU during 2025, opening up an additional ~$35B TAM.”
Stein remains positive on NVIDIA's AI dominance and their move into client CPUs, citing the company's success in the AI sector as a strong foundation for this expansion. The analyst expects 2025 to be another strong year for NVIDIA due to the new CPU-related market and the company's overall dominance in the technology space.
“All relevant industry contacts support the dominance and superiority of NVDA's full technology stack (not just chips...or servers...or even server racks...but especially software and pre-trained models).”
Stock Price Target Increase
Due to these factors, Truist Securities has raised its price target for NVIDIA shares from $169 to $204, indicating a potential 54% upside compared to current prices.
Blackwell AI Servers and TSMC
The article also mentions that NVIDIA's "Blackwell Ultra" GB300 AI servers are expected to debut by mid-2025. Despite some design challenges, the Blackwell architecture is expected to expand significantly in 2025. Discussions between NVIDIA and TSMC to manufacture Blackwell GPUs in TSMC's Arizona facilities are also ongoing, as supported by the Biden administration's funding for TSMC's Arizona production.
Disclaimer: This is not investment advice. The author has no position in any of the stocks mentioned.
