NVIDIA Corporation (NASDAQ: NVDA) stock rose modestly on Monday following a bullish price forecast from Wall Street analysts.
Nvidia (NVDA), a leading player in the AI chip industry, is witnessing a surge in optimism from analysts as the GTC event kicks off.
Truist analyst William Stein has revised the price target for Nvidia (NVDA) upward, setting it at $1,177 from the previous $911. Stein foresees rising demand for Nvidia’s chips in 2024 and 2025. This adjustment follows a similar move by analysts at HSBC, who also raised their price target from $880 to 1,050. Both financial institutions have maintained a buy rating on Nvidia stock.
This follows Bank of America analysts’ recent increase in their price target for Nvidia to $1,100 from $925.
Nvidia outperformed expectations yet again in February, delivering a beat-and-raise quarter. The company reported EPS of $5.16 on sales of $22.1 billion, compared to expected EPS of $4.59 and sales of $20.4 billion.
The company noted earlier that a limited supply of AI chips is the biggest challenge to growth. Customers might opt to await the arrival of the forthcoming B100 chip generation, expected in the coming quarters. Baird analysts view this development positively. B100 chips promise better performance and a higher price point.
The AI chip maker also revealed its stakes in various smaller AI companies in the recent Securities and Exchange Commission (SEC) filing.
CEO Jensen’s Optimistic Outlook
Meanwhile, CEO Jensen Huang painted a bright future for the company at the World Government Summit in Dubai, highlighting the exponential growth expected in data center spending over the next few years.
He said,
“Over the course of the next four or five years, we’ll have $2 trillion worth of data centers that will be powering software around the world, and all of it’s going to be accelerated.”
Huang added that countries can now “create computing technologies that nobody has to program.” “Everybody in the world is now a programmer.”
NVIDIA (NASDAQ: NVDA) Stock Performance
NVDA stock gained 0.70% to close at $884.55 on Monday. The traders had exchanged hands with 64,920,388 (64.92 million) shares compared to the average daily trading volume of 50.66 million.
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