A price target of $1,125 might seem ambitious, especially after the stock's recent gains, but the evidence suggests a clear path to that number.

The chipmaker used its GTC event to unveil the Blackwell GPU architecture, which, Nvidia said, will "power a new era of computing." The company said Blackwell will enable organizations to build and run real-time generative AI on trillion-parameter large language models at up to 25 times less cost and energy consumption than its predecessor.