NVIDIA Corp (NASDAQ:NVDA) shares are soaring to new all-time highs on Tuesday following positive analyst coverage. One analyst firm believes Nvidia stock can comfortably climb to $200 per share.
What To Know: Rosenblatt analyst Hans Mosesmann maintained Nvidia with a Buy rating. He also raised the price target from $140 to a new Street-high of $20, citing strong earnings potential from Nvidia's Hopper, Blackwell and Rubin lineup.
"While the future gains in adjacent networking Switch/NiC/DPU share are attractive, the real narrative lies in the software that complements all the hardware goodness," Mosesmann said in a new note.
The Rosenblatt analyst anticipates that the software aspect of Nvidia's business will continue to drive strong sales for the chipmaker over the next decade. As Nvidia's revenue mix begins to shift more towards software, Mosesmann believes an upward bias in terms of valuation will take hold given the sustainability of software.
Mosesmann expects Nvidia to generate at least $5 of EPS in 2026. When the analyst applies a "reasonable" 40x price-to-earnings multiple on his earnings expectations, he arrives at $200 per share.
Risks to the Rosenblatt analyst's thesis include declines in market share or increased competition in the GPU market, a lack of execution on the company's roadmap and the cyclical nature of the semiconductor industry.
It's worth noting that Rosenblatt isn't the only analyst firm getting more bullish on Nvidia with the stock at all-time highs. Wells Fargo also maintained Nvidia with an Overweight rating on Tuesday. The firm raised its price target from $125 to $155.
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NVDA Price Action: Nvidia shares were up 3.79% at $135.94 at the time of publication, according to Benzinga Pro.
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