Nvidia
stock still has room to run, one analyst team argued as they lifted their price target on the chip giant.
TD Cowen analysts led by Matthew Ramsay maintained their Outperform rating on Nvidia (ticker: NVDA) and raised their price target to $700 from $600 in a Tuesday report.
Shares were ticking 0.8% higher to $461.50 in premarket trading. The new price target implies shares have about 50% more upside.
Analysts are feeling optimistic about the company after hosting a week of investor meetings that included founder and CEO Jensen Huang and Chief Financial Officer Colette Kress.
“We believe the industry is in the early innings of two transformational paradigm shifts toward ubiquitous acceleration and generative artificial intelligence, with Nvidia’s wide moat potentially expanding,” the Cowen analysts wrote.
The stock has been on a tear this year—gaining more than 200% coming into Wednesday’s trading session—and some investors may wonder if that growth trajectory can continue, analysts noted.
“However, in our view, the suite of superior technology, long pedigree of innovation, and extensive growth-oriented investments should continue to allow for strong, sustained, above-peer growth across a widening set of AI verticals,” Cowen continued, adding that an uptick in new products should also offer a boost.
Write to Emily Dattilo at [email protected]
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