Nvidia is ‘dominating’ and could unlock $300 billion in AI revenue by 2027, analyst says

Read: Nvidia could follow ‘blowout’ outlook with more massive upside, analyst says

Nvidia’s AI revenue opportunity this year could be $25 billion to $30 billion, Rakesh noted, based on his expectation that the company will ship about 100,000 AI units this year at average selling prices of $250,000 to $300,000. Even though average selling prices could fall to $200,000 or so by 2027, Rakesh said he sees the potential for a massive uplift in unit sales as the company could ship 1.5 million AI servers by that point.

Though Nvidia shares have jumped 200% so far this year, Rakesh said he thinks they can run higher still. He boosted his price target on the stock to $530 from $400 and said that the new target is “conservative.”

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AI could come to bring a much bigger windfall for Nvidia shares than that target implies. With “an incremental ~$20-$300/share of AI value still to be unlocked,” that suggests “a potential NVDA value/share at ~$486-$760,” Rakesh wrote Sunday, while reiterating his buy rating.

See also: Nvidia’s stock could have a pathway to $600, Citi says

He also lifted his price target on neutral-rated Intel Corp. shares
INTC,
+1.95%
to $33 from $30 in his latest report.

Intel “could see some incremental revenue from the AI revolution, but with growth more muted” than competitors Nvidia and Advanced Micro Devices Inc.
AMD,
+0.63%,
he wrote.

Rakesh left his buy rating and $140 price target intact on shares of AMD.