The French competition agency raided the regional offices of a prominent player in the graphics card industry, strongly suspected to be Nvidia (NASDAQ:NVDA). Although the French authority has not officially revealed the identity of the company under scrutiny, individuals with knowledge of the operation have confirmed that Nvidia was the focal point of the investigation, as reported by the Wall Street Journal.
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The French authority said the raid was part of its broader inquiry into the cloud computing sector. It fears large cloud computing companies could leverage their resources to marginalize smaller rivals.
Nvidia’s dominance is reflected in its leadership position in the AI (Artificial Intelligence) space, with its GPUs widely used to power AI systems. During the Q2 conference call, Nvidia highlighted that leading cloud computing companies like Amazon’s (NASDAQ:AMZN) AWS, Alphabet’s (NASDAQ:GOOGL)(NASDAQ:GOOG) Google, and Microsoft’s (NASDAQ:MSFT) Azure are deploying NVDA’s HGX platform (termed as the engine behind AI) to upgrade their data center infrastructure.
While the outcome of the raids remains uncertain, analysts maintain their faith in NVDA stock. At the same time, their price target suggests significant upside potential from current levels.
How Much Will Nvidia Stock Go Up?
Analysts’ average 12-month price target of $635.48 implies 47.48% upside potential in Nvidia stock from current levels.
After a blistering rally, Nvidia stock has cooled a little in September. Its stock is down about 13% month-to-date on concerns that the AI-led boom could be simmering down. However, analysts maintain a bullish outlook on the stock given massive growth opportunities in the Data Center and Gaming segments due to the acceleration in the adoption and deployment of AI.
Meanwhile, Nvidia stock has received 40 Buy and one Hold recommendations for a Strong Buy consensus rating.
