Prediction: 8 Wall Street Analysts Lowered Nvidia's Price Target Last Week -- and This Is Just the Beginning

For more than two years, no trend has captivated the attention of investors quite like the evolution of artificial intelligence (AI). The ability for software and systems to reason, act, and potentially even evolve to learn new skills, all without the aid of human intervention, gives this technology a seemingly limitless ceiling.

According to PwC's Sizing the Prize, AI can add $15.7 trillion to the global economy by 2030 through a combination of productivity improvements and various consumption-side effects. This is a massive addressable market, with no company benefiting more in the early going than semiconductor colossus Nvidia (NASDAQ: NVDA).

In short order, Nvidia's Hopper (H100) graphics processing units (GPUs) and Blackwell GPU architecture grabbed hold of a monopoly like share of the AI-GPUs used in high-compute data centers. Overwhelming demand for the company's hardware, coupled with AI-GPU scarcity, led to exceptional pricing power and a generally accepted accounting principles (GAAP) gross margin that hit 78.4% during the fiscal first quarter of 2025 (ended April 28, 2024).

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