Market News
Nvidia (NASDAQ:NVDA) has repeatedly proven wrong those who doubted its continued growth over the past few years.
However, concerns such as a potential U.S.-China trade conflict, challenges in the rollout of its Blackwell chips, and a slowdown in AI capital expenditures by megascalers have contributed to the stock’s sideways movement over the past two months.
Given these concerns, investors can be forgiven for asking how much longer the AI giant can sustain its robust year-over-year revenue and margin growth.
Top investor Yiannis Zourmpanos is not ready to pull the plug on the Nvidia bonanza. In fact, Zourmpanos is expecting some big things in the month ahead when Nvidia shares its Q4 FY2025 report.
“Nvidia might be on track to post an astonishing YoY growth of more than 70%, fueled by unmatched dominance in AI and strategic expansion into high-growth verticals such as healthcare,” states the 5-star investor, who sits in the top 1% of TipRanks’ stock pros.
Zourmpanos is particularly bullish regarding Nvidia’s ability to make inroads into the $300 billion healthcare market, capitalizing on the increasing need for AI-powered medical imaging, genomics, and drug discovery.
The company’s efforts in this field are already bearing fruit, the investor adds, citing partnerships with leading firms such as IQVIA, aimed at transforming clinical trials, and Illumina, focused on expanding the use of genomics data across multiple applications.
Beyond the healthcare opportunity, the investor also spotlights Nvidia’s continuing technological leadership in the data center segment. Zourmpanos cites Blackwell’s 30x improvement in inferencing performance, along with the architecture’s ability to offer flexibility in working with numerous configurations and networking options.
These and other positives combine to create a stellar prognosis, and the investor spotlights the company’s projections of top-line revenues of $37.5 billion for Q4 2025. This would represent 70% year-over-year growth. Still, Zourmpanos advises against underestimating Nvidia’s history of exceeding expectations.
“Nvidia has demonstrated a constant pattern of exceeding top-line estimates that supports the stock value growth. Over the past 8 quarters, the company had positive top-line surprises, with an average surprise percentage of 8.64%,” the investor stated.
Not surprisingly, Zourmpanos continues to place faith in NVDA, rating the stock a Strong Buy. (To view Zourmpanos’ track record, click here)
Wall Street shows no signs of losing confidence in NVDA, either. With 36 Buy and 3 Hold ratings, NVDA holds a Strong Buy consensus rating. Its 12-month average price target of $176.86 implies an additional upside potential of over 20%. (See NVDA stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.