Barclays believes that Nvidia's stock price could rise another 35%.

When NVIDIA CEO Jensen Huang first stated that he expected the artificial intelligence infrastructure industry to benefit from $1 trillion in data center construction by the end of this decade, analysts at Barclays were not convinced. However, after a wave of announcements on AI data center construction in the past few months, these analysts now believe that Huang's initial prediction seems too conservative. Huang reiterated this prediction at the GTC developer conference in March. The analysts believe that industry spending may ultimately be double or even higher than Huang's early estimates. The Barclays team estimates that planned spending on AI infrastructure during the aforementioned period will exceed $2 trillion, totaling about 40 gigawatts of electricity. They believe that about 65% to 70% of this will be used for computing power and networking equipment needs. They also stated that with "more deals possibly brewing," Huang's updated prediction of AI infrastructure spending ranging from $3 trillion to $4 trillion now "looks much more realistic." Huang made this prediction during NVIDIA's second quarter earnings call in August. In a report on Thursday, Barclays stated that by observing the increase in computing power over the past year, the estimate of the potential market size for AI "no longer seems so far-fetched," and added that NVIDIA "appears to be" the most attractive stock among the semiconductor stocks it covers. Therefore, these analysts raised NVIDIA's target price from $200 to $240. The new target price represents a 35.6% increase from the stock's closing price of $176.97 on Wednesday.