Moore believes that the AI leader's earnings per share (EPS) will see a significant jump in the coming year, driven by a surge in demand for its chips.

Despite a recent reversal in share prices, with Nvidia's stock trading about 13% lower than its intraday high of over $140 per share last month, Moore remains bullish on the company. His new price target represents a potential gain of approximately 17.5% from the current price.

Moore's optimism stems from data checks that indicate strong demand for Nvidia's products in China, Taiwan, and the United States. As a result, he has raised his EPS estimate for next year from $2.94 to $3.34 per share. According to Moore, Nvidia's semiconductor business continues to be the most compelling narrative in the AI space, with improving visibility and backlog as the company transitions from H100 to H200 and then Blackwell.

While Nvidia is preparing to ship its new Blackwell AI platform in bulk, Moore notes that there is still a high demand for the existing H100 and H200 graphics processing units (GPUs). These chips are crucial for training generative AI models, and many customers have been eagerly awaiting their availability. As shipments of the Blackwell chip accelerate, sales of the H100 and H200 GPUs are expected to remain strong.

Investors are encouraged to consider buying Nvidia shares, even after the stock's significant gains, as there is a robust base of sales and a promising pipeline of new AI products on the horizon. The strong demand for Nvidia's chips, both current and upcoming, positions the company for continued growth and potential returns for investors.

Disclosure: Howard Smith, the author of the article, has positions in Nvidia. The Motley Fool, a renowned financial site, also has positions in and recommends Nvidia. The Motley Fool adheres to a strict disclosure policy.