Shares of chip giant Nvidia (NASDAQ:NVDA) continue to trend higher due to solid demand for its artificial intelligence (AI) computing chips. NVDA stock has gained over 249% in one year. Further, it is up more than 66% year-to-date and crossed $2 trillion in market cap on Friday, March 1. Despite significant appreciation in its price, analysts maintain a bullish outlook on NVDA stock.
Before we delve deeper, it’s worth noting Nvidia’s market cap exceeds Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). AMZN and GOOGL stocks sport a market cap of $1.85 trillion and $1.71 trillion, respectively.
With this backdrop, let’s look at the recent analysts’ comments about NVDA stock.
Nvidia Stock: Analysts’ Opinions
Interestingly, 38 out of 40 analysts covering Nvidia stock retain a Buy recommendation. Five-star analyst Ivan Feinseth of Tigress Financial raised NVDA’s price target to $985 (19.71% upside potential) from $790 on February 28. The analyst believes the integration of AI across all sectors and businesses will likely support NVDA’s revenue and cash flow, enabling the company to enhance its shareholders’ value.
Echoing similar sentiments, Susquehanna analyst Christopher Rolland reiterated a Buy on NVDA stock with a price target of $850 on February 22. Rolland said that Nvidia is benefiting from AI-led opportunities, which keeps him bullish. Further, the analyst thinks that NVDA’s premium valuation is warranted as he expects NVDA to capitalize on the end-market demand.
Like Feinseth and Rolland, Craig-Hallum analyst Richard Shannon also maintained a Buy rating on NVDA stock. The analyst’s bullish stance stems from Nvidia’s growth potential, driven by new products. Shanon increased the price target to $850 from $700.
Is Nvidia Stock Expected to Rise?
The notable rally in NVDA shares limits the upside potential over the next 12 months. Analysts’ average price target of $886.52 implies the stock could rise by 7.75% from current levels.
