Nvidia nasdaq Nvda and Advanced Micro Devices nasdaq Amd Stocks Soar on Ai Optimism

NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) Stocks Soar on AI Optimism

NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD)  witnessed a significant increase in their stock values on Tuesday. AMD shares surged to a two-year peak, reaching $158.64, reflecting an impressive 8.3% increase. Simultaneously, Nvidia achieved a new all-time high in its stock value.

This bullish sentiment is supported by robust artificial intelligence (AI) sales growth expectations. Analysts forecast that AMD’s AI revenue could hit around $4 billion by the close of 2024, possibly exceeding $7 billion in 2025. This anticipated growth is linked to increasing demand in the hyperscale and enterprise sectors.

Wall Street analysts have hiked their price targets for these semiconductor giants. Barclays has increased its price target for AMD shares from $120 to $200, while KeyBanc analysts followed suit by increasing their target to $195 from $170. KeyBanc also raised Nvidia’s price target to $740 from $650.

Barclays analysts, led by Tom O’Malley, said in a note to investors that NVIDIA Corporation (NASDAQ: NVDA), at present, is the leader in the advanced AI chips market. However, Advanced Micro Devices (NASDAQ: AMD) is expected to progress this year, particularly as the company increases the number of its chip deliveries to enterprise customers.

The Barclays analysts wrote,

“With supply constraints, customers are often using the entire NVDA platform in order to get priority shipments of accelerators.”

The analysts further stated that 2024 marks the commencement of AI’s widespread adoption, with chipmakers such as AMD gaining significant market share.