Nvidia Kicks Off Post-Stock-Split Era with Increased Price Targets
chipmaker Nvidia (NVDA)began trading on Monday following its 10-for-1 stock split, leading to price-target hikes from three Wall Street analysts. This news boosted Nvidia's stock.
Barclays, Susquehanna, and TD Cowen raised their price targets on the graphics-chip leader.
Barclays analyst Tom O'Malley increased his price target for Nvidia stock from a split-adjusted 120 to 145, maintaining his overweight, or buy, rating. O'Malley cited Nvidia's growing sales opportunities from sovereign nations purchasing its AI chips, predicting significant market acceleration next year.
Nvidia stock rose 0.8% to close at 121.79 on Monday.
No Expected 'Air Pocket' in Sales
Susquehanna Financial Group analyst Christopher Rolland raised his price target for Nvidia stock to 145 from 120, also on a split-adjusted basis, and reiterated his positive rating. Rolland's supply-chain checks indicate a smooth transition to Nvidia's B100 AI processors for data centers in the latter half of 2024.
Addressing concerns about a potential "air pocket" in sales during the transition from Hopper series GPUs to Blackwell series GPUs, Rolland expressed confidence in a seamless transition based on broad supply chain checks.
TD Cowen analyst Matthew Ramsay also maintained his buy rating for Nvidia stock, increasing his price target from 120 to 140. Ramsay reinforced the view of Nvidia as the leader in accelerated computing.
AMD Stock Downgraded
Meanwhile, Nvidia's competitor Advanced Micro Devices (AMD) saw its shares drop on Monday following a stock rating downgrade. Morgan Stanley analyst Joseph Moore downgraded AMD stock from overweight to equal weight, maintaining his price target at 176. AMD stock fell 4.5% to close at 160.34.
We like the AMD story, but investor expectations for the AI business seem overly optimistic," Moore commented, citing limited potential for upward revision in the AI sector.
Nvidia Stock on Five IBD Lists
Nvidia and AMD stocks are both featured on IBD's Leaderboard. Additionally, Nvidia appears on several other IBD lists, including IBD 50, Big Cap 20, Sector Leaders, and Tech Leaders. It is also one of the Magnificent Seven stocks.
Follow Patrick Seitz
For more updates on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on X (formerly Twitter) at @IBD_PSeitz.
Related News
-AI Boom Boosts Taiwan Semiconductor Sales
- Microsoft Leading AI Race with OpenAI Partnership
- Nvidia Stock Split: What Investors Should Know
-MarketSurge: Comprehensive Research and Analysis Tools
- Stocks Near a Buy Point**
Additional News and Resources
- Dow Jones Market Updates
- Investing Resources: Take a Trial Today
- IBD Videos: Market Updates and Educational Content
For more investing tips and tools, visit IBD's website and explore their extensive resources for stock charts, quotes, and educational content.
Post a Comment