Wall Street analysts have raised their estimates for Nvidia, reflecting strong confidence in its leadership in the AI chip market.

Analysts are particularly optimistic about Nvidia's data center segment and the upcoming Blackwell chips, contributing to a significant surge in its stock price.

Nvidia's stock has soared nearly 14% in the past week and is up 190% year-over-year, following a notable decline over the summer.

CEO Jensen Huang described the demand for Nvidia's next-generation Blackwell AI architecture as 'insane', countering fears of a peak in AI demand.

In the first quarter of 2025, Nvidia is expected to ramp up production of Blackwell units to between 750,000 and 800,000, a significant increase from previous quarters.

The new Blackwell chips are priced 60%-70% higher than the older Hopper chips, which could lead to increased sales revenues.

In a notable shift, investor Ken Griffin sold 9.2 million shares of Nvidia, reducing his stake by 79%, while increasing his holdings in Amazon and TSMC.

A recent $6.6 billion funding round for AI startups is expected to boost demand for Nvidia's AI chips, further enhancing its market position.

These developments help alleviate concerns regarding potential supply disruptions from geopolitical tensions in Taiwan, where TSMC, a major chip supplier, operates.

Despite a staggering 168.4% increase in share price year-to-date, Nvidia remains a Strong Buy on Wall Street, with 39 Buy ratings and only 3 Hold ratings.

Morgan Stanley and UBS have reiterated their Buy ratings on Nvidia, with a price target of $150, indicating a potential upside of 12.9%.

Nvidia's shares rose 4.1% at market close, marking the fifth consecutive day of gains as enthusiasm builds around the new Blackwell platform.