Nvidia’s Blackwell Chip Set to Drive Stock Growth in 2025, Analysts Predict
Nvidia, the leading graphics processing unit (GPU) manufacturer, is poised for significant growth in 2025, according to a recent report from Morgan Stanley. The bank has maintained an “overweight” rating on Nvidia’s stock, naming it their top pick for the upcoming year.
The primary catalyst for this optimistic outlook is Nvidia’s highly anticipated Blackwell chip, expected to be the company’s major highlight in 2025. Morgan Stanley analysts predict a 23% increase in Nvidia’s stock price, driven largely by the success of this next-generation AI chip.
Despite current transitional pressures, including concerns about slowing production of the current Hopper AI chip, analysts believe Blackwell’s strength will overshadow these issues by the second half of 2025. Investor sentiment is already positive, buoyed by high demand expectations for Blackwell, as indicated by Nvidia’s CEO.
While some investors have expressed concerns about the staggered release of Blackwell’s seven variants, Morgan Stanley acknowledges potential timing challenges but expects all variants to sell throughout the year. The bank also predicts a shift back to GPUs from ASICs in 2025, based on customer feedback, despite recent value transfers to competitors like Broadcom and Marvel.
Questions about the returns on scaling GPU cluster sizes have been raised by some investors. However, analysts point to Nvidia’s innovations, such as the Mellanox acquisition, which enhance large cluster efficiency. Despite potential market consolidation, growth in inference, sovereign training, and enterprise applications are expected to drive long-term data center revenue growth.
As the AI trade remains a key theme influencing stock market dynamics, Nvidia’s stock is expected to continue its bullish trend into 2025, fueled by ongoing excitement around AI advancements.
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