Nvidia (NVDA) received strong backing from Wall Street as Barclays analyst Tom O’Malley raised his price target to $240 from $200, maintaining an “Overweight” rating. The upgrade reflects optimism about Nvidia’s dominant role in artificial intelligence (AI) infrastructure spending.

Barclays estimates that over $2 trillion will be invested in AI initiatives across roughly 40 gigawatts of global capacity over the next four to five years. Each gigawatt requires approximately $50-60 billion in infrastructure and around 500,000 graphics processing units (GPUs). NVDA stock appears poised to capture a majority of this massive buildout.

Massive AI Infrastructure Spending Boosts NVDA Stock

Analysts project that 65-70% of AI spending, around $1.5 trillion, will flow toward compute and networking, where Nvidia maintains clear leadership. This could translate to nearly 19 million GPU sales, expected to impact Nvidia’s profit-and-loss statement over the next five years.

Significant projects include Meta (NASDAQ:META) 2-gigawatt initiatives, the 10-gigawatt Stargate project with OpenAI, and smaller projects from Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). International expansion in regions like Saudi Arabia and South Korea adds momentum.

NVDA stock has delivered strong returns over the past decade, though it has recently plateaued. The $240 price target suggests nearly 40% upside from current levels, based on a 35x price-to-earnings multiple on projected 2026 earnings, up from 29x previously.

The Bull Case for NVDA Stock

Nvidia is executing a strategy to solidify its AI leadership through partnerships, infrastructure investments, and open-source initiatives. A potential $100 billion collaboration with OpenAI—the largest AI infrastructure project in history—will deploy at least 10 gigawatts of Nvidia systems, including millions of GPUs, to power next-generation AI models serving over 700 million weekly users.

Nvidia also invested £2 billion ($2.6 billion) in the U.K. AI ecosystem, partnering with CoreWeave (CRWV), Microsoft, and Nscale to deploy 120,000 Blackwell Ultra GPUs by 2026.

Additionally, a $5 billion Intel (NASDAQ:INTC) partnership enables custom x86 CPUs for Nvidia AI platforms and integration of RTX GPU chiplets into Intel’s SoC designs, strengthening Nvidia’s competitive moat.

NVDA Stock Price Target and Analyst Outlook

Despite its scale, Nvidia’s growth story continues. Analysts forecast revenue to rise from $130.5 billion in fiscal 2025 to $378 billion in fiscal 2029, a 23.7% annual growth rate. Adjusted earnings per share are projected to climb from $2.99 to $8.92, a 24.4% annual growth rate.

Of the 46 analysts covering NVDA stock, 39 recommend “Strong Buy,” two “Moderate Buy,” four “Hold,” and one “Strong Sell.” The average price target stands at $214, well above the current $178 trading level, highlighting strong potential upside for investors betting on AI adoption.

Why NVDA Stock Remains Attractive

NVDA stock remains a leading AI investment due to its robust infrastructure partnerships, international expansion, and technological innovation. With trillions in AI spending underway and new initiatives positioning the company for continued growth, Nvidia offers investors exposure to long-term growth in the semiconductor and AI ecosystem.

NVDA Stock and Long-Term AI Leadership

Looking ahead, NVDA stock appears well-positioned to maintain its leadership in AI infrastructure. The company’s continued investment in GPU development, AI software platforms, and strategic partnerships ensures that Nvidia will remain a key supplier for enterprise and cloud AI initiatives.

Competition from rivals such as AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) is intensifying, but Nvidia’s early-mover advantage in AI hardware, coupled with its deep integration with AI software platforms like CUDA, provides a durable competitive moat.

Investors should also note the optionality of Nvidia’s emerging segments, including autonomous vehicle technology through partnerships with Tesla (NASDAQ:TSLA) and other robotics AI applications. These ventures could contribute materially to revenue in the next five to ten years, further supporting NVDA stock’s long-term growth thesis.

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