Nvidia Stock Soars to a Fresh Record. What's Next?

Wall Street analysts reiterate their Buy ratings on the stock. Citing strong demand for artificial intelligence, Bank of America last Friday raised its price target from $165 to $190, while investment research firm CFRA raised its price target for Nvidia last week from $139 to $160. Overall, analysts see shares rising to $148.37 over the next 12 months, according to Bloomberg consensus estimates.

Wedbush analyst and Nvidia bull Dan Ives echoed that sentiment in a note to investors last Sunday, writing that there is “a tidal wave of enterprise spending as AI use cases explode,” with Nvidia leading the market.

Ives forecasts the AI infrastructure market to grow tenfold between now and 2027, with companies spending $1 trillion on AI capital expenditures in that time frame.

Nvidia CEO Jensen Huang has said there is “insane” demand for its AI chips, which are used in data centers by Big Tech companies to power generative artificial intelligence software. Mr. Huang spoke to the company’s competitive moat which rests on a) the company’s large installed base (which, in turn, fuels the virtuous positive cycle that entails more developers), b) the company’s ability to innovate not just at the chip level but at the data center level, and c) its robust and growing software offerings, including domain-specific libraries such as Nvidia Parabricks (i.e. genomics analysis) and Nvidia AI Aerial (i.e. software-defined and cloud-native 5G networks).

Starting this week, several big tech companies will begin to release their earnings reports one after another. The earnings reports from these tech companies could significantly impact Nvidia's stock price.

Source: Yahoo Finance, Investing