NVIDIA, which fell 15% in September, why is it still the "fighter jet" among AI chip stocks?
Truist has set a target price of $668 for Nvidia, indicating a potential upside of 60%. The reason behind the bank's optimism on the stock is that Nvidia chips are the "default choice for most engineers building AI systems" and are "best suited for tackling the majority of AI workloads, especially when training new models."
This summer curse in the US stock market has also affected NVIDIA, which had previously experienced a surge of over 200% this year.
Since September, NVIDIA has fallen by more than 15%, with its stock price dropping from nearly $500 to $419. Can it bounce back?
Don't worry. According to Truist, a Wall Street investment bank, the AI wave, although already hot for about a year, is still on the rise. For investors, there are still attractive opportunities, and NVIDIA is still maintaining its leading position in AI chip stocks!
Therefore, Truist analyst William Stein reiterated a "buy" rating for NVIDIA and set a target price of $668. Based on the latest closing price, this price implies a 59% upside potential!
Truist points out that the reason for being optimistic about NVIDIA is that NVIDIA chips are the "default choice for most engineers when building AI systems" and are "best suited to handle most AI workloads, especially when training new models."
NVIDIA has previously stated that data center hardware worth $1 trillion needs to be replaced every four years, and more infrastructure will focus on AI demands.
Truist further stated that with the continuous growth in demand for AI servers, NVIDIA's data center revenue is expected to increase in the coming years, and it will maintain a leading position in the gaming and autonomous driving markets.