Analyst: NVIDIA's advantage is "dominant", AI revenue will reach $300 billion in the next five years.

Riding the AI wave, Rui Sui analyst believes that NVIDIA will continue to rise and has raised its target price to $530.

In the latest report, Rui Sui analyst Vijay Rakesh pointed out that NVIDIA, as a leading player in AI computing power and chip manufacturing, has a "dominant" advantage in the AI chip market and is expected to capture a significant market share in the future.

Rakesh stated:

Although NVIDIA may face more intense competition in the future, it is expected to maintain a "significant" market share. By 2027, AI-related revenue is projected to reach $300 billion.

Furthermore, Rakesh mentioned that NVIDIA's revenue for this year could reach $25 billion to $30 billion, with an estimated shipment of approximately 100,000 AI products at an average selling price of $250,000 to $300,000. Although the average selling price may decrease to around $200,000 by 2027, Rakesh believes that the company could ship 1.5 million chip products by then, leading to a substantial increase in sales.

NVIDIA's stock price has surged over 200% year-to-date, surpassing the trillion-dollar market cap milestone. Rakesh believes that the stock price can continue to rise and has raised the target price from $400 to $530, stating that the new target is relatively conservative.

Rakesh believes that the impact of AI on NVIDIA's stock price could be beyond imagination, with an incremental value of approximately $20-300 per share, indicating a potential value of $486-760 per share for NVIDIA.