Nvidia Stock Investors Just Got Great News From Wall Street That Could Send Shares Soaring

Nvidia (NASDAQ: NVDA) has been one of the hottest stocks on the market in recent years. Shares have advanced 840% since December 2022 amid tremendous demand for the company's graphics processing units (GPUs), chips that power essentially all of the most advanced artificial intelligence systems.

Nvidia is currently worth $3.3 trillion, but certain Wall Street analysts see upside arising from its Blackwell GPUs and robotics computing solutions. Here's the good news for Nvidia shareholders.

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Nvidia's Blackwell GPU could a bigger success than most analysts anticipate

Tom O'Malley at Barclays last week raised his target price on Nvidia to $175 per share, up from $160 per share. That forecast implies nearly 28% upside from its current share price of $137. He cited expectations that Nvidia's next-generation Blackwell GPUs will drive a meaningful increase in sales growth as the reason for the upward revision.

Remember, Nvidia GPUs are the industry standard in accelerating data center tasks like artificial intelligence (AI). Compared to the previous Hopper architecture, Blackwell GPUs can handle AI training tasks up to four times faster and AI inference tasks up to 30 times faster. O'Malley estimates Blackwell GPUs will add $15 billion to sales in the current quarter, and thinks that number could more than double in the next quarter.

Barclays is not the only Wall Street firm to revise its outlook higher. LSEG data shows the average estimate regarding Nvidia's earnings in the fourth quarter of fiscal 2025 (which ends in January 2025) has increased 5% in the last 90 days, and the average estimate for fiscal 2026 has increased 9% during the same period. Many analysts attribute their upward revisions to increased confidence in Blackwell.

Beth Kindig, lead technology analyst at the I/O Fund, is particularly optimistic. She believes data center sales will increase at least 50% in fiscal 2026, driven by Blackwell GPU sales of at least $200 billion. Looking further ahead, Kindig estimates Nvidia will be worth $10 trillion by 2030, which implies 200% upside from its current market value of $3.3 trillion.

Additionally, Dan Ives at Wedbush says demand for Blackwell GPUs is currently outpacing supply by a factor of 15. Put differently, he believes Nvidia can only supply a single chip for every 15 chips that customers want to buy. That adds context to recent commentary from Nvidia CFO Colette Kress, who said during the third-quarter earnings call that Blackwell "demand greatly exceeds supply."

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Nvidia has an underappreciated opportunity in autonomous driving and robotics

Dan Ives recently told CNBC the Wall Street consensus underestimates Nvidia's earnings growth by 30% over the next few years. He attributes some of that shortfall to Blackwell GPU revenue, which he believes will beat expectations in the near term. But Ives also sees upside to the consensus arising from robotics solutions in the long term.

That last point is particularly important. The market is currently focused on generative AI, but Nvidia CEO Jensen Huang says the next wave of AI is robotics powered by physical AI. For context, generative AI can create text, images, and other media content in response to prompts, whereas physical AI can understand, navigate, and interact with the real world.

Nvidia has been very successful in monetizing generative AI, which is good reason to believe the company will be just as successful with physical AI. Nvidia has the distinct advantage of providing a full-stack computing solution for autonomous robots. Its robotics platform comprises the supercomputing chips and networking gear needed to train AI models, and the software development tools needed to build industrial manipulation arms, autonomous vehicles, and humanoid robots.

Importantly, Nvidia's automotive and robotics sales totaled just $449 million in the most recent quarter, which pales in comparison to the company's $30.7 billion in data center revenue. However, Jensen Huang believes autonomous vehicles and robotics will eventually become two of the largest computing industries in the world, which hints at strong growth in the coming years.

Indeed, Ives estimates that Nvidia has a $1 trillion opportunity in autonomous vehicles and robotics, and he believes the company will ultimately attain a market value of $5 trillion as it monetizes those opportunities. His forecast implies 52% upside from its current market value of $3.3 trillion. That is undoubtedly great news for Nvidia shareholders.

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Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.