Nvidia Stock Is Staring Down a New $1 Trillion Opportunity. How Should You Play NVDA Here?

Nvidia (NVDA) shares are inching up on Thursday, April 24 after the artificial intelligence behemoth rolled out a new software platform dubbed “NeMo” that helps enterprises build custom AI agents. 

With the launch of NeMo microservices, the chipmaker wants to strengthen its footprint in autonomous AI agents, which the Wall Street Journal expects will replace enterprise software over time. 

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Despite today’s surge, Nvidia stock is down some 30% versus its year-to-date high. 

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NeMo Is a Massive Opportunity for Nvidia Stock

NeMo microservices could prove a meaningful tailwind for NVDA this year as “autonomous AI agents” is an estimated $1 trillion market opportunity. 

Plus, being a software platform, it doesn’t run the risk of coming in the crosshairs of tariffs or the rising trade tensions between the U.S. and China. 

In contrast, Nvidia’s chips business stands to lose about $5.5 billion in the wake of escalating trade tensions between two of the world’s largest economies in Q1. 

Still, Piper Sandler reiterated its “Overweight” rating on Nvidia shares on Thursday. The firm’s $150 price target indicates potential upside of about 45% from current levels. 

NVDA Remains a Top AI Pick for 2025

Despite emerging challenges, experts continue to believe in NVDA’s long-term potential. 

Doug Clinton, the founder and chief executive of Intelligent Alpha, for example, dubbed Nvidia stock a “top pick” for AI exposure in his recent interview with CNBC. 

Clinton believes U.S. hyperscalers will continue to spend on the company’s AI chips even if the economy slides into a recession in 2025. 

The AI stock remains attractive also because it’s going for 24 times forward earnings at the time of writing - well below its average forward price-earnings multiple over the past five years, he added. 

Consensus Rating on NVDA Shares Is Still a ‘Strong Buy’

Note that other Wall Street analysts remain largely bullish on NVDA as well. 

The consensus rating on Nvidia stock currently sits at “Strong Buy” with the mean target of about $168 indicating potential upside of 60% from here. 

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.