Stock market: Analysts revise their Nvidia price targets upwards

Nvidia’s stock market value continues to rise, driven by the exciting prospects of the artificial intelligence sector. This morning, several analysts revised upwards their price targets for the action of the electronic chip giant.

Nvidia consolidates its stock market dominance thanks to the promises of AI

The success of generative AI models like ChatGPT has highlighted the crucial role of Nvidia chips. Its cutting-edge GPUs power the servers that run these innovative AI systems.

Demand for Nvidia’s H100 AI-focused chips is exploding. Its major customers like Microsoft, Google and Meta are investing billions in this hardware. In the last quarter alone, AI-related sales increased 30% year-over-year.

Thanks to its technological lead, Nvidia is ideally positioned to take advantage of soaring AI spending.

Driven by the enthusiasm around artificial intelligence (AI), graphics chip manufacturer Nvidia continues to excite analysts. According to data from the Unusual Whales service, no less than 5 renowned analysts revised their price targets upwards this morning.

According to Wedbush, the semiconductor sector benchmark could further climb to $800. Same story for Bank of America. Wells Fargo is even more optimistic with an estimated upside potential of $840. As for Barclays and Oppenheimer, they are squarely aiming for $850.

This optimism reflects Nvidia’s dominant position in the booming market for specialized AI chips. The Californian firm is the main supplier of H100 GPUs at $30,000 per unit, which equip generative AI servers used by Google, Meta and Microsoft.

Growth that could slow down!

However, there are signs that this exceptional trajectory could experience some turbulence. The limited availability of Nvidia’s GPUs is causing some customers to turn to alternatives, such as AMD chips or developing their own AI components.

In addition, strategic differences have emerged between Nvidia and certain major players in the sector, such as OpenAI. If the AI ​​semiconductor industry were to be fundamentally transformed, Nvidia’s current dominant position could be called into question.

However, in the short and medium term, the market leader seems set to continue to achieve record results. Driven by the explosion in AI spending, its turnover could double again by 2025 according to analysts. This spectacular growth potential explains their current optimism.

Even losing some market share, the size of the pie is growing so quickly that Nvidia can largely compensate. Especially since the company has considerable assets: its technological advance, its increased production capacities, and multi-year contracts with the big names in the Cloud.

It is difficult in these conditions to envisage a sudden reversal of the trend. Barring a thunderclap from outside, Nvidia seems able to ride the AI ​​wave for a long time to come.

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