Nvidia Stock Soars to a Fresh Record. What's Next?
Nvidia stock rose 4.14% on Monday and closed at a record high of $143.71 per share, and its shares continued climbing in after-hours trading. Nvidia’s shares are up 198.34% so far this year.
Wall Street stays bullish ahead of earnings
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.
In addition to growth in the AI market at large, Bank of America analyst Vivek Arya said Nvidia’s strength in the enterprise AI space — i.e., its partnerships with companies such as $Microsoft (MSFT.US)$ and $Accenture (ACN.US)$ — is another factor contributing to his higher price target. Arya said “Nvidia is the partner of choice” for enterprise AI hardware and software.
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 said there is an ‘insane’ demand for its AI chips
Despite Nvidia's stock price dropping after $ASML Holding (ASML.US)$'s disappointing earnings report last Tuesday 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.
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).
Besides, recent positive news from the company's industry partners has also boosted AI stocks across the board, including Nvidia. $Micron Technology (MU.US)$, which supplies memory chips used in Nvidia’s GPUs, and $Taiwan Semiconductor (TSM.US)$, which manufactures Nvidia’s AI chips, both surpassed Wall Street’s expectations in their recent earnings reports.
The market is focused on the disclosure of capital expenditures by tech giants
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.
The next test will be $Tesla (TSLA.US)$, an important Nvidia customer, which will report its earnings on Wednesday evening. The electric-vehicle maker uses artificial intelligence computing and relies on Nvidia's GPUs to train its driver assistance products and the Optimus robot it hopes to sell one day.
Additionally, the financial reports from other major Nvidia clients, including $Microsoft (MSFT.US)$, $Amazon (AMZN.US)$, $Alphabet-A (GOOGL.US)$, and $Meta Platforms (META.US)$, will also provide investors with insights into Nvidia's performance. The capital expenditures of these companies contribute to Nvidia's sales revenue. Wall Street expects their total capital expenditures for the quarter ending in September to exceed $60 billion, an increase of 56% year-over-year.
Source: Yahoo Finance, Investing
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
Follow the top news of US market!
52KFollowers
7Following
27KVisitors
Follow
one9bombrich : Next up is the world's highest market cap public company.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Alen Kok : Good
129455432345 : Nvda is a good company with an actual product. They will do well for next 10
joemamaa : great