Nvidia shares soar as analysts raise price targets ahead of earnings report

Nvidia shares soar as analysts raise price targets ahead of earnings report

Nvidia (NVDA), the leading chipmaker for artificial intelligence (AI) applications, saw its shares hit a record high of $666 on Friday, as analysts raised their price targets for the stock ahead of its fourth-quarter earnings report on Feb21

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Bank of America was the most bullish, boosting its price target for Nvidia to $900 from $700, the highest on Wall Street2. The bank said that Nvidia would benefit from the rise of AI, which is expected to contribute $15.7 trillion to the global economy by 20303. Bank of America also cited Nvidia’s strong performance in the third quarter, when its sales of AI chips surged 206% to $18.1 billion3.

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Other analysts were also optimistic about Nvidia’s prospects, as they anticipated a strong earnings beat and raise. Mizuho increased its price target for Nvidia to $825 from $625, while maintaining a buy rating on the stock3. The firm said that Nvidia was the best AI machine learning play, and that it expected a steady ramp-up of its AI products in the first half of 2024, followed by an acceleration in the second half. UBS also lifted its price target for Nvidia to $850 from $580, and kept a buy rating on the stock. The firm said that customer discussions confirmed that Nvidia’s lead times had improved over the past few months.

INNAUMATION

Analysts surveyed by FactSet expect Nvidia to report earnings of $4.56 per share on revenue of $20.2 billion for the fourth quarter, compared to 88 cents per share on $6.1 billion in revenue for the same period a year ago.

Nvidia, which was founded in 1988 as a graphics card maker, has diversified its business over the years, expanding into gaming, data center, automotive, and cloud computing markets. It has also established itself as the dominant player in the AI chip market, as its graphic processing units (GPUs) are better suited to handle the complex and intensive workloads of AI applications than the traditional central processing units (CPUs) used by most computers
Nvidia’s CEO, Jensen Huang, said in a statement that the company was “at the center of the most important trends in technology”, and that it was “creating the future with our customers”.

Source : TR

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