Nvidia (NASDAQ: NVDA) has a “generational opportunity” that may expand to 10–15% of the S&P 500 index, Evercore ISI analysts wrote in a note on Sunday.
According to the investment banking firm, Nvidia is more than simply a semiconductor business; it is an “ecosystem play” poised to dominate the era of parallel computing, “driven by an every 15-20 year tectonic shift in computing.”
Analysts believe that Nvidia’s current breakout above $1,000 per share has “unlocked the door” for the stock to reach $1,500, a projection supported by the Semiconductor Index’s strong performance, which has risen by 87% since October 2023 but is still short of the historic tech bubble surge.
According to Evercore’s study, Nvidia’s growth is far from over, with the firm estimating a base case of $69 in earnings per share (EPS) power in 2030 and a bull case of $82.
This forecast “could be conservative if the 2030 prospective “start date” for Artificial General Intelligence (AGI) materializes,” according to the note.
It further emphasizes that, while high-profile stock splits can increase short-term volatility, they also “reset the generational buying opportunity, time after time.” Nvidia’s imminent 10:1 stock split is likely to spark a short rally, followed by a smart buying opportunity for patient investors.
While Evercore sees NVDA as having noteworthy potential, it remains optimistic about other “AI revolutionaries.” According to the business, these are the companies “enabling the AI Revolution and those who have quickly adopted AI in order to deepen their competitive moats.”
“These names are long-term buy and hold stocks, the cornerstone of an AI-exposed portfolio,” Evercore stated.
Among the firms on its AI revolutionaries list are Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Salesforce (NYSE:CRM), Pinterest (NYSE:PINS), Broadcom (NASDAQ:AVGO), and Uber Technologies (NYSE:UBER), among others.
Nvidia is a ‘generational opportunity’ and might develop to represent 10–15% of the S&P 500.
