Nvidia Hits New Intraday High as Wall Street Analysts Remain Bullish Ahead of Earnings Report
Nvidia (NVDA) shares soared to a new intraday high on Monday, fueling excitement among investors as Wall Street analysts maintain their bullish stance on the stock leading up to its earnings report in November.
The AI chipmaker’s shares jumped 3% to surpass $142, outperforming Nvidia’s previous intraday high of $140.89 from last week. This surge in stock price comes as Wall Street analysts uphold their Buy ratings on the stock. Bank of America (BAC) recently raised its price target on Nvidia from $165 to $190, citing robust demand for AI. Additionally, investment research firm CFRA boosted its price target for Nvidia from $139 to $160 last week. According to Bloomberg consensus estimates, analysts anticipate Nvidia’s shares to climb to $148.37 within the next 12 months.
Besides the overall growth in the AI market, Bank of America analyst Vivek Arya highlighted Nvidia’s dominance in the enterprise AI sector as a key driver for the higher price target. Arya underlined that “NVDA is the partner of choice” for enterprise AI hardware and software, showcasing the company’s strength through partnerships with industry giants like Microsoft and Accenture.
Wedbush analyst Dan Ives echoed a similar sentiment, emphasizing a significant uptick in enterprise spending on AI amid a burgeoning AI market. Ives projected a tenfold increase in the AI infrastructure market by 2027, with companies expected to allocate $1 trillion towards AI capital expenditures during that period. Ives also foresees a 20% uptick in tech stocks in 2025, driven by the ongoing tech bull market ignited by the AI Revolution.
While there were brief concerns over a potential AI spending slowdown, Nvidia’s shares have climbed nearly 3% in the past week and over 20% in the last month. CEO Jensen Huang acknowledged the “insane” demand for Nvidia’s AI chips, used in data centers by tech behemoths to power advanced AI applications. The positive news from Nvidia’s industry partners, including Micron (MU) and TSMC (TSM), has further bolstered the AI chipmaker’s stock and the AI sector as a whole.
Looking ahead, the AI chip market is forecasted to surge by 99% in 2024 and an additional 74% in 2025, as per data from International Business Strategies. Although investors remain hopeful for Nvidia’s continued growth, any potential slowdown could adversely impact the stock’s performance, especially in the current climate where investors are scrutinizing Big Tech companies’ quarterly reports.
Wall Street analysts predict that Nvidia will report earnings per share of $0.74 for the third quarter, representing an 84% increase from the previous year. Revenue is expected to climb by 83% to $33.1 billion. With 67 analysts maintaining Outperform ratings on Nvidia stock, 7 suggesting a Hold rating, and only one recommending selling shares, the overall sentiment on the stock remains overwhelmingly positive.
As the tech sector gears up for the next phase of growth driven by the AI Revolution, investors are eagerly anticipating Nvidia’s upcoming earnings report and its implications for the market.
For more updates on the latest stock market news, in-depth analysis, and events shaping the financial landscape, stay tuned to Extreme Investor Network.
Remember, investing involves risks and it’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions. Stay informed and stay ahead in the world of investment with Extreme Investor Network.