Nvidia stock still has room to run thanks to AI spending, analyst says

Photo of author

after missing the big run-up in NVIDIA ,NVDA) stocks this year, investment bank turned positive on the graphics-chip maker on Friday.


analyst Joseph Moore upgraded Nvidia stock from overweight, or equal weight, or neutral. He also raised his price target from Rs.255 to Rs.304.

Nvidia’s stock closed up 0.7% at 257.25 on the stock market today. Year to date, through Thursday’s close, Nvidia was up 74.8%.

Moore said in a note to clients, enthusiasm over artificial intelligence and large language models “is translating into strong spending in both the near term and long term” that will benefit Nvidia.

“We’ve been very data point-oriented around a positive big picture, but the story is very strong,” he said.

Nvidia stock in top 2% of stocks

Nvidia’s sales and earnings have been pressured over the past three quarters by weak gaming device sales and slowing data center business. But generative AI, such as ChatGPT, is becoming a megatrend that can’t be ignored, Moore said.

Moore said that artificial intelligence is “one of the most important developments in technology since the development of the Internet.” He added that cloud computing services will compete for leadership in the AI ​​sector in the next three to five years.

“We are seeing a significant shift in cloud spending for AI (and in our view towards Nvidia), even as budgets come under pressure,” he added.

According to Nvidia Stock has an IBD overall rating of 98 out of 99 ibd stock checkup, This places it in the top 2% of stocks for performance across key fundamental and technical measures over the past 12 months.

See also  Mahindra Ties Up With Jio-bp For Electrical Automobiles, Low Carbon Options

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strength. The best growth stocks have a Composite Rating of 90 or better.

In addition, Nvidia stock is on the leaderboard list of IBD.

Follow Patrick Seitz on Twitter @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

You may also like:

Microsoft stock tumbles after software giant adds AI to Office apps

Contract Manufacturer Jabil Seas Shares Seesaw After Earnings Report

The worst is over for PC, smartphone chip stocks, says analyst

View stocks in the list of leaders near a buy point

Find winning stocks with MarketSmith pattern recognition and custom screens