Loop Capital has made a bold move, predicting a triumphant surge for Nvidia (NVDA) stock by setting an audacious target price of $1,200. The investment bank is signaling a resounding vote of confidence in the chipmaker’s ability to outdo analysts’ projections for the next few years. Furthermore, Oppenheimer, another esteemed investment bank, also exhibited bullish sentiments today by raising its price target on NVDA shares to $850.

Rationale Behind Loop Capital and Oppenheimer’s Optimism

Loop Capital expressed its bullish stance with an initiation of coverage for NVDA, awarding it a “buy” rating alongside the celestial $1,200 price target. The reasoning stems from the bank’s belief that the demand for chips used in the creation and maintenance of artificial intelligence (AI) will remain robust for the next three to five years, with Nvidia being the preeminent producer of such chips. Hence, Loop anticipates that the firm will enjoy unbridled demand for its products throughout the current and upcoming years.

On the other hand, Oppenheimer foresees Nvidia’s fourth-quarter results, slated for unveiling on Feb. 21, to exceed the average estimates put forth by analysts. The investment bank attributes its optimism to the firm’s robust revenue generation from data centers, which is expected to be the primary catalyst driving its superior-than-projected performance. However, Oppenheimer underscores the importance of Nvidia’s updates on its China operations, given the historical significance of the Chinese market in contributing to the company’s data center revenue.

Analyzing the Street’s Sentiment on NVDA Stock

The collective sentiments of financial institutions and market analysts are overwhelmingly sanguine about Nvidia’s potential to flourish in the midst of the AI revolution. Notably, 38 firms have assigned a “strong buy” rating to the stock, while 11 firms stand by with “buy” ratings, and only four firms have issued “hold” recommendations for NVDA. It’s imperative to recognize the remarkable ascent of NVDA shares, having surged by 27% in the last month, 47% in the previous three months, and a jaw-dropping 230% in the trailing year.

Nevertheless, some voices in the financial sphere have raised valid concerns about the stock’s lofty valuation, characterized by a steep forward price-earnings ratio of 35.8 and an exorbitant trailing price-sales ratio of 40 times. It remains to be seen whether these concerns will materialize into tangible obstacles for Nvidia as it continues its meteoric ascent.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.