Nvidia Reaches New Heights as Earnings Season Approaches
The tech world is abuzz with anticipation as Nvidia’s stock soared to a record high on Monday, closing at $143.71 per share. This marks a 4.14% increase, with shares continuing to climb in after-hours trading. The chipmaker’s impressive performance has been a recurring theme this year, with its shares up a staggering 198.34% so far.
A Vote of Confidence from Bank of America
Friday saw Bank of America raise its price target for Nvidia to $190 from $165, citing the company’s competitive lead and generational opportunity. Research analyst Vivek Arya pointed to recent industry events, including Taiwan Semiconductor Manufacturing Company’s (TSMC) earnings results and Advanced Micro Devices’ AI event, as key factors behind the price target lift. Arya also highlighted Nvidia’s growing presence in enterprise AI, where it is the partner of choice.
A Record-Breaking Streak
Nvidia’s stock has been on a tear, setting multiple record highs in recent weeks. Last week, the chipmaker’s stock briefly climbed over 3% to set an intraday record of $140.89 per share, following TSMC’s earnings beat. This marked the stock’s highest intraday level since June 20, when it reached $140.76 per share.
TSMC’s Earnings Boost
TSMC’s strong earnings report also contributed to Nvidia’s surge. The company reported revenue of NT$759.69 billion, or $23.5 billion, for the quarter ending September 30, representing a 36% year-over-year increase in U.S. dollars. This was also a 12.9% increase from the previous quarter.
A Brief Setback
Despite the recent gains, Nvidia’s stock did experience a brief setback last Tuesday, falling over 4% after closing at a record high $138.07 the previous day. This drop was attributed to reports that the U.S. could cap sales of advanced artificial intelligence chips from U.S.-based chipmakers to certain countries. However, the stock has since rebounded, demonstrating its resilience and investor confidence.
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