‘Focus on the Silverline,’ Says Top Analyst About Nvidia Stock
Nvidia (NASDAQ:NVDA) has kicked off 2025 in muted fashion. Unlike the strong momentum seen over the past couple of years, the stock has struggled to gain traction amid a less bullish perception of the chip giant. While Nvidia continues to post huge growth, concerns are mounting over its long-term sustainability.
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Meanwhile, on top of general macro concerns, the potential impact of trade policies and further export restrictions to China along with DeepSeek’s noisy entrance have been among developments giving investors pause for thought.
The result? A 17% drop in Nvidia’s stock price so far this year. Those hoping last week’s GTC conference would help build momentum again were left disappointed as the required bump for the shares did not materialize.
But while stock momentum has been lacking, Roth’s Suji Desilva, an analyst ranked in the top 2% of Street stock pros, notes that the noises the company made at GTC indicate there is still “continued AI infrastructure momentum.”
Nvidia CEO Jensen Huang anticipates AI data center capex reaching $1 trillion by 2028, indicating a sustained increase from the substantial AI hyperscale capex commitments already planned for 2025.
“We believe NVDA’s AI GPU roadmap and larger cabinet clusters emphasize the company’s push to enable higher performance and feature-rich AI applications which will, in our view, drive continued strong capital investment,” Desilva went on to add.
The 5-star analyst anticipates that hyperscalers, emerging AI cloud providers (such as xAI), and sovereign entities will all focus on developing what Nvidia refers to as “AI factories,” which prioritize token generation much like the industrial era prioritized the production of physical goods.
Desilva also likes the fact Nvidia’s roadmap for rack architectures appears to take inspiration from telecom switch hot-swappable line card designs – a modular design used in telecommunications networking equipment – enabling a more native and efficient integration of large GPU clusters working together.
Moving forward, Desilva anticipates a “steady AI compute focus shift” from predominantly large-batch foundational model training to more sophisticated and flexible compute-intensive inferencing. Nvidia highlighted that inferencing workloads – enhanced by recent breakthroughs in reasoning models (such as DeepSeek) – will demand “orders of magnitude” computing power compared to traditional LLMs.
“We expect waves of AI infrastructure spending to be driven by progression to future AI stages, such as reasoning AI, agentic AI, and physical AI,” Desilva opined. “We note that physical AI is a parallel roadmap toward AI-enabled autonomy across auto and robotics, both slow-thinking/reasoning and fast-thinking.” (To watch Desilva’s track record, click here)
So, while Nvidia’s stock has lost steam lately, the company’s long-term narrative is still humming with potential. And Wall Street agrees: the consensus rating on NVDA remains a Strong Buy, backed by 39 Buys and just 3 Holds. The average price target stands at $176.54 — implying a 58% upside from current levels. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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