Nvidia (NVDA, Financials) experienced a slight uptick in premarket trading on Monday after Piper Sandler identified it as the top large-cap choice in the artificial intelligence accelerator market, pointing to its market-leading position.
Harsh Kumar, a Piper Sandler analyst, linked Nvidia's success to its capacity to hold a sizable portion of the expanding AI accelerator market—which he projects would reach about $70 billion in 2025. While Nvidia will probably keep the lion's share of this expansion, Kumar pointed out that some rivalry from merchant chip firms still exists. Kumar did stress, however, that Broadcom (AVGO, Financials) is the only other significant participant projected to make appreciable slow progress in this area. With a target price set at $175, he kept Nvidia's Overweight rating the same.
Among the main cloud providers, Kumar also underlined a positive trend in capital expenses: Amazon (AMZN, Financials), Microsoft (MSFT, Financials), and Meta (META, Financials). With an eye on investments in chips and servers over real estate and other fixed assets, he said that these businesses are projected to maintain or maybe raise their capital expenditure until 2025. According to Kumar, this change would probably provide Nvidia continuous growth momentum in the short to mid-term, which will improve expectations for its January quarter and fiscal year 2026 performance.
