Nvidia Stock Reaches New Heights as Analysts Remain Bullish
Nvidia’s stock price has surged to a record high, with shares closing at $143.71 on Monday. This represents a 4% increase, driven by Wall Street analysts’ continued confidence in the company’s prospects ahead of its November earnings report.
Strong Demand for AI Drives Growth
Bank of America has raised its price target for Nvidia from $165 to $190, citing robust demand for artificial intelligence. Investment research firm CFRA has also increased its price target, from $139 to $160. According to Bloomberg consensus estimates, analysts expect Nvidia’s shares to rise to $148.37 over the next 12 months.
Partnerships and Enterprise AI Strength
Bank of America analyst Vivek Arya attributes Nvidia’s success to its partnerships with companies like Microsoft and Accenture, as well as its dominance in the enterprise AI space. Arya notes that Nvidia is the “partner of choice” for enterprise AI hardware and software. Wedbush analyst Dan Ives echoes this sentiment, predicting a “tidal wave of enterprise spending” on AI, with Nvidia leading the market.
AI Infrastructure Market Expected to Grow Tenfold
Ives forecasts the AI infrastructure market to grow tenfold between now and 2027, with companies spending $1 trillion on AI capital expenditures during this period. He believes the stage is set for tech stocks to see another 20% move higher in 2025, driven by the AI Revolution.
Despite Fears of Slowdown, Nvidia Shares Continue to Rise
Nvidia shares have risen nearly 3% over the past week and more than 20% in the last month, despite concerns about an AI spending slowdown. CEO Jensen Huang has reported “insane” demand for the company’s AI chips, which are used in data centers by Big Tech companies to power generative artificial intelligence software.
Positive News from Industry Partners Boosts AI Stocks
Recent positive news from Micron and TSMC, which supply memory chips and manufacture Nvidia’s AI chips, respectively, has boosted AI stocks across the board, including Nvidia. The AI chip market is expected to grow 99% in 2024 and another 74% in 2025, according to consulting firm International Business Strategies.
Wall Street Analysts Expect Strong Earnings Report
Wall Street analysts tracked by Bloomberg expect Nvidia to report third-quarter earnings per share of $0.74, an 84% increase from last year. They see revenue rising 83% to $33.1 billion. With 67 analysts maintaining Outperform ratings on Nvidia stock, the company’s prospects look bright.
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