FX168 Financial News (North America) — On Thursday (April 18), “Business Insider” reported that, according to an Evercore ISI report this week, although Nvidia (Nvidia)'s stock price has soared by more than 200% in the past year, it still has huge upward potential.

The company rated Nvidia as “outperforming the market,” with a target price of $1,160, which means 36% potential upside from current levels. Evercore said that in a bull market scenario, Nvidia's stock price could soar to $1,540 next year, up 81% from current levels.

The idea driving this lofty price target is that Nvidia is more than just a chip company, but most investors still think just that.

“We think investors are underestimating two things: 1) the importance of the chip+hardware+software ecosystem created by Nvidia, and 2) the computing era lasts 15-20 years, usually dominated by a vertically integrated ecosystem company, with returns between 100 and 1000 times,” Evercore analyst Mark Lipacis said.

The key argument behind Lipacis' optimistic predictions is that Nvidia is an artificial intelligence ecosystem company and a clear leader in new computing platforms that will drive efficiency improvements over the next few years.

“'Ecosystem games' usually account for 80% of the value created in their respective computing eras, while others compete for the other 20%,” Lipacis said.

Lipacis expects Nvidia to account for 80% of the parallel processing market by 2030, which could be worth more than $350 billion. In this case, Nvidia's earnings per share would reach $69 by the end of this century, compared to the company's earnings of $11.93 per share last year.

“We believe that the structural shift to the current parallel processing/IoT computing era began 5 to 8 years ago, and that Nvidia is the dominant ecosystem in parallel processing, and that this is only at the beginning of generating huge returns for investors,” Lipacis said.