"Only orders from Microsoft, Meta Platforms, ByteDance, and Google are enough to meet this quarter's target!" Wall Street finds Nvidia's demand "more optimistic than expected."

Chip demand "through the roof," dominator "NVIDIA" may far exceed general expectations.

On Monday, Bernstein analysts calculated that NVIDIA's actual performance may be more optimistic based on the latest disclosed AI spending plans by cloud computing vendors.

The analyst team aggregated their estimates of Microsoft, Meta, ByteDance, and Google's AI chip spending growth and found that these four companies alone are enough to help NVIDIA achieve its guidance for this quarter. At the same time, they expect other large tech companies and AI startups to have a more optimistic demand for NVIDIA.

Bernstein analysts stated that the current factor limiting NVIDIA's revenue is the advanced chip packaging capability of semiconductor foundries. With the improvement of packaging capability next year, NVIDIA is expected to generate $75 billion to $90 billion in data center and AI chip revenue in 2024, while the consensus expectation of Wall Street analysts is only $42 billion.

However, Bernstein's technical analyst team downplayed the short-term and medium-term risks that may arise from excessive construction of AI infrastructure, such as the boom and bust of NVIDIA chip demand.

They have upgraded NVIDIA's stock rating to "outperform" with a target price of $475. Currently, NVIDIA's stock price is around $467.

The Bernstein team stated that NVIDIA's performance is expected to continue to grow and may continue to rise for a considerable period of time, at least in the next 12-18 months. This analysis result demonstrates an optimistic outlook for NVIDIA's future development.

Previously, Mizuho analyst Vijay Rakesh also pointed out that AI brings unimaginable upside potential to NVIDIA's stock price and raised NVIDIA's target price from $400 to $530.