Pre-market surges by 8%! Why can the stock price of NVIDIA, the "top player" in AI chips, continue to rise?
Wall Street believes that while Nvidia's better-than-expected quarterly report is important, what's even more significant is that Nvidia has alleviated concerns in the market about its ability to meet the growing demand for AI chips. According to Oppenheimer, Nvidia remains the purest player in terms of scale in the field of AI applications, and its stock price is expected to continue to rise.
After the release of better-than-expected performance, Nvidia's stock surged 8% in pre-market trading, also driving up companies like AMD, Intel, and Broadcom!
On Wall Street, while Nvidia's impressive quarterly report is important, what's even more crucial is Huang Renxun's response to questions about the sustainability of their progress in artificial intelligence (AI) chips during the conference call. According to him:
The global data center market is worth about $1 trillion, and accelerated computing and generative AI are becoming long-term trends. The supply will continue to increase, but the specific growth percentage is still uncertain.
In simple terms, Nvidia has alleviated concerns in the market about its ability to meet the growing demand for AI chips.
As a result, KeyBanc analyst raised Nvidia's target price by 8% to $670, maintaining a "buy" rating. Based on the latest closing price of $471.16, this price implies a 42% upside potential!
The firm pointed out that as visibility extends to 2024, Nvidia's management has identified more suppliers and expects to increase supply every quarter next year to meet demand.
In the latest research report, Oppenheimer also stated: "In the field of AI applications, Nvidia remains the purest player in terms of scale, and its stock price is expected to continue to rise."
Therefore, the firm raised Nvidia's target price by 30% to $650, maintaining an "outperform" rating. Based on the latest closing price, this price implies a 38% upside potential!