Nvidia (NASDAQ:NVDA) has been on a remarkable upward trajectory over the past few years, solidifying its status as a powerhouse in the AI chip market. While many investors are buzzing with excitement, one question looms: can anything disrupt Nvidia's impressive momentum?

Harsh Kumar, a highly regarded 5-star analyst at Piper Sandler and ranked in the top 1% of Wall Street professionals, believes not. In a recent statement, he expressed confidence that Nvidia is poised for another significant leap, declaring it his top large-cap pick.

According to Kumar, Nvidia's market dominance in AI accelerators is only set to grow. He predicts that the total addressable market (TAM) for AI accelerators could increase by approximately $70 billion by 2025, positioning Nvidia to capture a considerable share of this growth, while only conceding a minor portion to competitor chip makers.

A key aspect of the upcoming growth is the anticipated launch of Nvidia's Blackwell architecture, which is expected to be widely available in early 2024. Kumar forecasts that the new chip could generate several billion dollars in revenue during its first quarter, with estimates ranging between $5 billion and $8 billion, leaning towards the higher end of that spectrum.

Historical data supports Kumar’s optimism, as Nvidia has consistently outperformed market expectations during initial product rollouts. The demand for Nvidia's existing products, such as the H100 and H200 chips, remains robust across various sectors, including cloud computing, enterprise, and sovereign applications. However, the initial rollout of Blackwell will primarily cater to hyperscalers—large-scale data center operators—who are committed to maintaining or even increasing their capital expenditure (capex) on compute resources.

Tech giants like Microsoft and Meta are expected to continue investing heavily in technological infrastructure, prioritizing spending on chips and servers over fixed assets. “We anticipate sustained levels of capex through 2025, if not an acceleration, driven by the increasing demand for advanced computing solutions,” Kumar stated.

Reflecting his bullish outlook, Kumar has upgraded his rating on Nvidia shares to Overweight (Buy) and raised his price target from $140 to $175, indicating a potential increase of about 20% in the upcoming months.

This confident stance aligns with Wall Street’s overall sentiment, which has designated Nvidia with a Strong Buy rating based on 39 Buy ratings and 3 Holds. The consensus price target of $157.82 suggests an approximate 8% gain within the next year, making Nvidia a compelling choice for investors.

With the AI landscape continuously evolving and Nvidia at the forefront, many analysts and investors are eagerly watching this stock, poised for an exciting journey ahead. If you’re looking to capitalize on the booming AI market, Nvidia could be the ticket to success!