Nvidia’s third-quarter results have left analysts impressed, leading many to raise their price targets for the chipmaker’s stock. The company witnessed an extraordinary surge in its data center revenue, propelled by a robust demand for its AI chips. This success has also led Nvidia to boost its shipment expectations for its next-generation Blackwell AI chips.

Several analysts have adjusted their stock price targets following Nvidia's performance. Wedbush analysts upped their price target to $175 from $160, suggesting a 21% potential upside from Thursday's intraday price. Their optimism stems from robust demand for Nvidia's AI chips and the encouraging production pace of the Blackwell chip.

Nvidia's CEO, Jensen Huang, assured stakeholders during the earnings call that the company is on track to deliver more Blackwell chips than previously expected for the quarter ending in January. Mizuho analysts also increased their price target to $175 from $165, forecasting up to $5 billion in revenue from Blackwell chip sales within that period.

Additionally, Nvidia addressed and seemingly dismissed concerns about potential overheating issues with Blackwell chips, which had caused some investor apprehension. Wedbush analysts believe that alleviating these worries should bolster investor confidence in Nvidia's execution capabilities.

Despite this positive outlook, Nvidia's stock showed volatility, fluctuating between gains and losses early Thursday and ultimately trading about 1% lower at $144.57 by midday. Notably, the stock has almost tripled in value since the start of the year.

Wedbush analysts further speculated that Nvidia’s GPUs have the potential to spark increased spending across the tech sector. They estimated that each dollar spent on an Nvidia GPU might generate an $8 to $10 multiplier effect industry-wide, potentially invigorating a tech rally into the year-end and beyond.