Is Nvidia stock going to $144?

Here's why Nvidia may be back on its way to hitting a new all-time high.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) share prices have recently reversed course after seemingly pushing higher for months without a breather. The stock now trades nearly 13% off its intraday high price of over $140 per share hit last month.

There is one Wall Street analyst who thinks shares of the artificial intelligence (AI) leader will soon rebound and even exceed its all-time high. Morgan Stanley analyst Joseph Moore put out a new note on Nvidia on Monday increasing his price target from $116 to $144 per share. Moore determined that share price based on what he sees as a jump in earnings per share (EPS) through next year. Moore thinks Nvidia stock is worth buying as his new price target would represent a gain of about 17.5% from its current price.

Nvidia's "compelling narrative"

After data checks pointed to strong demand in China and Taiwan, as well as the U.S., Moore raised his EPS estimate for the semiconductor giant from $2.94 to $3.34 per share for next year. Moore believes Nvidia, "remains the most compelling narrative in the AI [semiconductor] space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially."

That last point is the key to an investment in Nvidia right now. Even after its recent correction, Nvidia shares had run up ahead of revenue and earnings growth. In other words, further growth is already built into the stock price to some extent.

But even as Nvidia prepares to begin bulk shipments of its new, Blackwell AI platform, its H100 and H200 graphics processing units (GPUs) are still in high demand. That's because many of Nvidia's customers have been waiting in line to get these high-strength computing chips needed for training generative AI models.

Those sales will remain strong even as shipments of the new Blackwell chip accelerate. That's why investors should still feel comfortable buying Nvidia shares. Even after the massive gains, there is a strong base of sales, and an even stronger pipeline of new AI products ahead.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Howard Smith has positions in Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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