This article first appeared on GuruFocus.
Oct 6 – Nvidia (NASDAQ:NVDA) may not be done surprising Wall Street. Despite a strong year-to-date rally near 40%, Melius Research analyst Ben Reitzes believes the chipmaker’s momentum can continue, lifting its shares another 45% to $275. He argues that predictions of a slowdown in AI growth overlook the sheer scale of spending underway across the tech industry.
The analyst pointed out that major companies are racing to secure AI infrastructure. OpenAI’s new partnership with Advanced Micro Devices (NASDAQ:AMD), involving six gigawatts of chips and a potential purchase of 160 million AMD shares, underscores how quickly capital is pouring into the sector.
Nvidia, for its part, has committed $100 billion toward OpenAI and signed a $6.3 billion deal with CoreWeave (NASDAQ:CRWV) to lock in computing capacity.
Reitzes sees these moves as strategic, not circular. With AI workloads growing rapidly and data center upgrades continuing, he projects Nvidia could control more than 40% of the AI infrastructure market by 2030. That could translate to roughly $800 billion in potential market share and strong multi-year revenue expansion for the industry’s current leader.