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Key Takeaways
- After Nvidia reported third-quarter outcomes that blew previous estimates, a number of analysts raised their worth targets for the chipmaker’s inventory.
- Nvidia’s information heart income reached a quarterly file on robust demand for its AI chips, and the corporate stated it expects to ship extra of its Blackwell AI chips than beforehand anticipated.
- Nvidia’s chips may additionally drive larger spending throughout the tech sector, Wedbush analysts stated.
After Nvidia (NVDA) reported file quarterly income pushed by positive factors in its information heart gross sales and raised expectations for its Blackwell synthetic intelligence (AI) chips, a number of analysts boosted their worth targets for the chipmaker’s inventory.
Wedbush analysts lifted their worth goal to $175 from $160, implying about 19% upside from Thursday’s closing worth, pointing to robust demand for Nvidia’s AI chips and indicators manufacturing of its next-generation Blackwell chip is “ramping at the least as quick as anticipated.”
On the corporate’s earnings name, CEO Jensen Huang stated Nvidia is on observe to ship extra Blackwell chips than beforehand anticipated within the present quarter, which runs by means of January. Analysts at Mizuho raised their worth goal to $175 from $165 after the decision, projecting as much as $5 billion in Blackwell income within the interval.
Citi analysts bumped their worth goal to $175 from $170, and Goldman Sachs hiked its goal to $165 from $150, anticipating positive factors from “rising demand for AI infrastructure throughout all buyer teams.”
Nvidia additionally appeared to dismiss worries surrounding reported Blackwell points with overheating, which “ought to alleviate any lingering investor issues round Blackwell execution,” Wedbush analysts wrote.
Shares of Nvidia wavered between positive factors and losses in Thursday’s session, and briefly climbed to an intraday file earlier than closing 0.5% increased at $146.67. The inventory has almost tripled in worth because the begin of the yr.
Nvidia GPUs Might Drive Larger Spending Throughout Tech Sector, Wedbush Says
Wedbush analysts additionally steered Nvidia might be poised to guide a tech rally into year-end and 2025 after its robust outcomes, with a ripple impact from spending on its chips that would increase the broader tech trade. The analysts estimated that each $1 spent on an Nvidia GPU may have an $8 to $10 multiplier impact throughout the tech sector.
UPDATE—Nov. 21, 2024: This text has been up to date to incorporate extra analyst feedback and mirror newer share worth values.