Nvidia (NVDA) stock could still have plenty of room to run to the upside, according to one Wall Street analyst who sees revenue scaling to extraordinary levels by the end of the decade.
In a new CNBC interview, Ben Reitzes, head of technology research at Melius, says Nvidia’s long-term growth potential remains unmatched despite near-term volatility.
Shares of the semiconductor giant traded slightly lower following its latest earnings report, weighed down by muted guidance around China and a slower ramp for the firm’s new Blackwell chips. But Reitzes argues that the broader growth story outside of China remains firmly intact.
“[Nvidia’s] guidance was really solid. The core growth outside of China is just really good, mid-teens growth. And then there should be more great growth in the fourth quarter.
So, I think where all systems go. And then one final thing, Will, they did mention on the call a very huge TAM, Total Addressable Market, by the end of the decade.
This is something we’ve been calling for. That really implies revenue by the end of the decade, if they grow along with the industry, to be over $600 billion, which is just a huge number, which means the stock can even
double from here, if not more.”
But in the medium term, Reitzes says the firm is ready to buy dips as Melius predicts a new all-time high for NVDA.
“Price target $240, and we’d be buyers on weakness and think they’re on track. The sequential growth shows that there’s probably not much to worry about here.”
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