Nvidia Stock Soars to New Heights as AI Demand Drives Growth
Shares of Nvidia, the leading AI chipmaker, reached a new intraday high on Monday, with Wall Street analysts reaffirming their bullish stance on the stock ahead of its November earnings report. The stock rose 3% to above $142, surpassing its previous high of $140.89.
Strong Demand for AI Drives Growth
Bank of America analyst Vivek Arya cited strong demand for AI as a key factor contributing to his higher price target of $190, up from $165. Investment research firm CFRA also raised its price target from $139 to $160. Analysts expect shares to rise to $148.37 over the next 12 months, according to Bloomberg consensus estimates.
Nvidia’s Strength in Enterprise AI
Arya noted that Nvidia’s strength in the enterprise AI space, particularly its partnerships with companies like Microsoft and Accenture, is another factor driving growth. Wedbush analyst Dan Ives echoed this sentiment, forecasting a “tidal wave of enterprise spending” on AI infrastructure, with Nvidia leading the market.
AI Infrastructure Market to Grow Tenfold
Ives predicts the AI infrastructure market will grow tenfold between now and 2027, with companies spending $1 trillion on AI capital expenditures. He believes the stage is set for tech stocks to see another 20% move higher in 2025, led by the AI Revolution.
Nvidia Shares Rise Despite Fears of AI Spending Slowdown
Despite a short-lived tumble last week and looming fears of an AI spending slowdown, Nvidia shares have risen nearly 3% over the past week and more than 20% in the last month. Recent positive news from industry partners has also boosted AI stocks across the board.
AI Chip Market to Grow 99% in 2024
The AI chip market is expected to grow 99% in 2024 and another 74% in 2025, according to consulting firm International Business Strategies. However, even the slightest slowdown in Nvidia’s growth could send the stock lower, as investors proved difficult to please during Big Tech’s last wave of quarterly reports.
Wall Street Analysts Bullish on Nvidia
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. Some 67 analysts have Outperform ratings on Nvidia stock, while 7 maintain a Hold rating, and only one recommends selling shares.
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