Nvidia-Backed AI Stock Primed for 35% Surge - Wall Street’s Latest Bullish Call

Wall Street spots lightning in a bottle—Nvidia's AI bet poised for explosive growth.

The Analyst's Crystal Ball

One analyst sees clear skies ahead for this semiconductor play, projecting a 35% upside that'd make traditional finance veterans blush. While hedge funds debate quarterly earnings, this AI contender builds foundational tech that could reshape entire industries.

Nvidia's Seal of Approval

When the AI kingmaker backs a horse, markets pay attention. This isn't about chasing hype—it's about infrastructure plays that power the next decade of computational evolution. The same patterns that built crypto fortunes now emerge in AI's hardware layer.

Timing the Wave

35% isn't just a number—it's a starting pistol for investors who understand technological inflection points. Remember when skeptics called Bitcoin a fad? Today's AI infrastructure plays carry that same disruptive aroma.

Finance's open secret: the real money moves before headlines catch up. While analysts crunch numbers, the smart money already positions for the coming AI tsunami.

Image source: Getty Images.

Why follow Nvidia?

First, though, a quick note on why we should consider a stock that Nvidia favors. As mentioned, Nvidia is a giant in the AI market, and this company doesn't only stick to designing its chips. Nvidia also communicates extensively with customers and governments and has its finger on the pulse of the AI market. The company has a good idea of what future demand will look like, as it recently predicted that AI infrastructure spending may reach as much as $4 trillion by the end of the decade.

That means Nvidia knows how to spot a strong AI company. On top of this, Nvidia actually is "putting its money where its mouth is," to use an old expression, and has invested in this company in a big way. Considering this, it's a great idea to have a look at this particular AI growth story.

So, which Nvidia-backed company may be on the road to big gains? I'm talking about(CRWV -1.76%), a cloud provider in the GPU-as-a-service (GPUaaS) market. GPUs, or graphics processing units, are the key AI chips driving critical tasks like the training and inferencing of large language models. GPUaaS allows customers to rent out compute as needed, and they like this as it allows them to limit costs and gain in efficiency.

Citizens JMP analyst Greg Miller recently boosted his recommendation on CoreWeave to "outperform" from "market perform," set a price target of $180, and based this on growing momentum in the GPUaaS market. This price target represents an increase of 35% from the stock's closing price on Sept. 22.

The GPUaaS market

To understand CoreWeave's potential, it's key to take a closer look at the GPUaaS market and the company's relationship with GPU leader, Nvidia. The GPUaaS market is expected to expand at a compound annual growth rate of 30% to more than $73 billion over the next seven years, according to Global Market Insights.

CoreWeave is an expert in the field, with its cloud platform built specifically for AI workloads -- this may help it stand out from larger cloud service providers that offer many other services beyond AI to their customers. CoreWeave also holds another advantage, and that's its close relationship with Nvidia. Not only is the chip giant an investor in CoreWeave stock, but it's also supporting the company in other ways. For example, CoreWeave has been the first to make Nvidia innovations generally available to customers. And in a recent agreement, Nvidia said it WOULD buy any cloud capacity CoreWeave is unable to sell to others through 2032. This removes a key risk from the CoreWeave story.

CoreWeave stock already has soared, advancing more than 230% from its initial public offering back in March, but like Nvidia and Citizens JMP's Greg Miller, I don't think the potential for gains is over. The company has reported strong growth, with revenue tripling in the recent quarter, and the general demand for AI capacity supports the idea of more growth ahead.

All of this means that now, before this Nvidia-backed player surges 35%, is a great time to get in on the story and hold on for the long term as the AI boom continues.