On July 8th, UBS analyst Timothy Arcuri stated in a client report that Nvidia's stock price rise will continue and is expected to exceed $150.

UBS mentioned that recent supply chain surveys have shown that the demand for Nvidia's next-generation Blackwell GPU architecture is "extremely strong".

In March of this year, Nvidia announced the launch of a new generation Blackwell GPU architecture. Blackwell is Nvidia's next-generation AI GPU system, which will replace the popular H100 chip later this year.

Akuri stated that in the context of bottlenecks in power generation infrastructure, the improved power efficiency of Blackwell series products has to some extent driven demand for this series of products.

According to the official introduction, Blackwell can enable global institutions to build and run real-time generative AI on a 10 trillion parameter Large Language Model (LLM), and its cost and energy consumption can be reduced by up to 25 times compared to the previous generation of products.

At that time, Nvidia revealed that its partners would start supplying products using the Blackwell architecture later this year. Among them, Amazon's AWS, Google Cloud, Microsoft's Azure, and Oracle Cloud infrastructure will become the first cloud service providers to provide Blackwell driver instances. In addition, Cisco, Dell, Lenovo, and Supermicroare expected to provide various servers based on Blackwell products.

UBS stated that the astonishing rise in Nvidia's stock price will continue, benefiting from strong market demand for next-generation artificial intelligence chips.

UBS reiterated its "buy" rating on Nvidia's stock in its latest report, raising its 12-month target price from $120 per share to $150 per share, which means the stock has 16% room for growth compared to its current level.

This latest supply chain survey may alleviate some investor concerns that ultra large cloud companies may suspend procurement during the transition period between Nvidia's current Hopper series products and the upcoming Blackwell series products.

Akuri stated in the report, "With the increase of the super large budget in 2025, the order volume of NVL72/36 system (NVL72) has significantly increased compared to two months ago." Akuri stated that Microsoft may become the early largest buyer of NVL72.Nvidia's GB200 NVL72 is a multi node liquid cooled rack level expansion system suitable for highly computationally intensive workloads. It combines 36 Grace Blackwell superchips together, including 72 Blackwell GPUs and 36 Grace CPUs connected to each other through the fifth generation NVLink.

Akuri stated that since falling from historical highs at the end of June, Nvidia's stock price has been facing "pullback concerns". But Akuri said that if the bank's outlook becomes a reality, then this stock price correction should ultimately be healthy.

Akuri's sales and revenue expectations for Nvidia in 2025 are higher than Wall Street's general expectations. He now expects Nvidia's earnings per share to be $4.95 and sales to be $204 billion next year, while the common expectation is earnings per share to be $3.62 and sales to be $161 billion.

Akuri believes that if Nvidia's earnings per share do reach $5 next year, its expected P/E ratio will reach about 25.6 times. Considering the company's rapid growth rate and the expected P/E ratio of 21 for the S&P 500 index, this valuation is not considered high.