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Nvidia faces a high bar, but it’s ‘hard to bet against’ the chip stock, analysts say


Nvidia Corp. shares were moving higher Tuesday after a pair of analysts boosted their bullish views of the hot chip stock.

Though expectations for Nvidia’s
NVDA,
+2.12%

earnings next calendar year “have risen substantially,” UBS analyst Timothy Arcuri said he thinks investors should “stay the course” and take advantage of a pullback in shares that occurred during most of last week.

“Even for more tactical investors, it still seems early to get off this train because [year-over-year comparisons] won’t get tough until year-end and the stock has rarely peaked prior to Y/Y comps peaking,” Arcuri wrote as he lifted his price target on Nvidia shares to $540 from $475.

He set a buy rating on the stock.

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Arcuri offered a similar sentiment to that of Morgan Stanley analyst Joseph Moore, who called out a buying opportunity in Nvidia’s stock in a Monday report.

Meanwhile, Wells Fargo’s Aaron Rakers upped his price target on Nvidia shares to $500 from $450 Tuesday, even as he said he and his team aren’t “fans” of where buy-side expectations appear to be headed into Nvidia’s Aug. 23 earnings report and the “very high bar” the company faces.

“[W]e think it’s hard to bet against NVDA’s preeminent positioning as the primary beneficiary of an AI-driven architectural data center transformation,” Rakers wrote. On top of that, the company still has “underappreciated” opportunities in platform expansion and monetization, he added.

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Rakers set an overweight rating on Nvidia shares, which were up 0.8% in morning trading Tuesday after closing 7.1% higher in Monday’s session.

The stock is off 7.1% from its all-time closing high of $474.94, which was achieved on July 18.



This story originally appeared on Marketwatch

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