Nvidia Corp. has set the financial world ablaze with its blistering rally in the early months of 2024, prompting a frenzied rush on Wall Street to recalibrate price targets for this artificial intelligence juggernaut. At least five major firms have hurriedly revised their projections upwards this month alone, spurred by the chip giant’s staggering 46% surge in share value, translating to a mind-boggling $560 billion surge in market capitalization. This meteoric rise, fueled by relentless demand for its AI-accelerating chips, has prompted UBS Group AG and Mizuho Securities, among others, to join the ranks of Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc. in boosting their price targets ahead of Nvidia’s forthcoming earnings report slated for Feb. 21.
In the latest flurry of adjustments, UBS has hiked its target to $850 from $580, accompanied by upward revisions to its earnings per share estimates. Similarly, Mizuho has upped its target to $825 from $625. Vijay Rakesh of Mizuho attributes the unrelenting demand for Nvidia’s H100 AI accelerators as the driving force behind this surge, affirming the stock’s position as the premier AI investment play.
Despite a slight 0.2% dip in Nvidia’s stock on Tuesday, settling at approximately $721, it outpaced its counterparts in the big-tech arena, which faced downward pressure following a report indicating higher-than-expected US consumer price inflation last month, resulting in a 1.6% decline in the Nasdaq 100 Index.
Hailing from Santa Clara, California, Nvidia has emerged as the darling of both the S&P 500 and Nasdaq 100 indices this year, capturing the hearts of Wall Street with its stellar performance. With 58 buy ratings, five holds, and only a single sell rating, it stands as one of the most adored stocks on the market.
Despite analysts significantly bolstering 2024 revenue estimates by over 100% in the past year, they find themselves struggling to keep pace with Nvidia’s relentless ascent, which has propelled its market cap beyond that of Amazon.com Inc. Nevertheless, Wall Street’s average 12-month price target of approximately $690 trails some 4.4% below Tuesday’s closing price.
