Shares of chip maker Nvidia (NASDAQ:NVDA) are higher after it released second-quarter figures and forward guidance that had Wall Street analysts dropping their jaws and raising their price targets. Wedbush Securities’ Dan Ives described it as a monumental moment for tech, equating Nvidia’s AI prowess to epoch-making events like the Internet’s rise in 1995 and the iPhone’s debut in 2007. Ives emphasized that investors should be looking at this AI trend with a long-term lens, akin to generational shifts in tech.
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Looking ahead, Nvidia projects a bullish $16 billion in third-quarter sales, overshooting analysts’ estimates. This upbeat trajectory led several analysts to up their targets: Rosenblatt’s Hans Mosesmann bumped his price target to a staggering $1,100, citing the shift to accelerated computing. Others like KeyBanc’s John Vinh and WestPark’s Kevin Garrigan also boosted their targets, celebrating the results that exceeded even the loftiest expectations. And while expectations were high, BMO’s Ambrish Srivastava noted that wasn’t an issue at all for Nvidia.
What is the Fair Value of Nvidia Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $617.98 per share implies 27.88% upside potential.
