Nvidia witnessed a more than 3% increase in its shares, accompanied by robust trading volume on Tuesday, following the upward adjustment of price targets by two brokerages. This move has further elevated already high expectations in anticipation of the chipmaker’s upcoming quarterly earnings report.
As the world’s most valuable semiconductor company, Nvidia has been a focal point in this year’s surge in technology stocks. This momentum has surged due to the optimism surrounding the potential of artificial intelligence and the demand for components that fuel such technology.
With over $22 billion worth of Nvidia shares traded by mid-day, it surpassed the $14 billion of Tesla trades, a stock typically considered one of the most traded on Wall Street.
As Nvidia gears up for its fiscal second-quarter report on August 23, UBS analyst Timothy Arcuri has elevated his price target from $475 to $540, while Wells Fargo has raised theirs from $450 to $500. This action came in the wake of Morgan Stanley recently designating Nvidia as their “top pick.”
Wells Fargo analyst Aaron Rakers emphasized, “We think it’s hard to bet against NVDA’s pre-eminent positioning as the primary beneficiary of an AI-driven architectural data center transformation.”
The notable surge of 24% in Nvidia’s stock on May 25 was a result of the company, headquartered in Santa Clara, California, offering a second-quarter revenue forecast that surpassed Wall Street estimates by more than 50%, buoyed by the demand for its AI chips utilized in technologies like ChatGPT.
Refinitiv data reveals that analysts, on average, anticipate Nvidia to report a 66% uptick in quarterly revenue, amounting to $11.13 billion. This projection is consistent with Nvidia’s own forecast for quarterly revenue at $11 billion, with a variance of plus or minus 2%.
