Nvidia’s stock has seen significant gains this year, driven by strong demand for its artificial intelligence (AI) chips. Despite recent corrections, analysts remain bullish on the company’s upward potential. The current market sentiment is supported by several factors:
The age of AI is indeed upon us, and Nvidia is poised to benefit from the growing computing scale. CEO Jensen Huang’s statement has reinforced this notion, highlighting the vast potential for growth in the industry.
Recent sales figures have also shown impressive momentum. In its fiscal third quarter, Nvidia reported a record high revenue of $35.1 billion, with data-center revenue more than doubling year-over-year to $30.8 billion. This surge is attributed to the increasing demand for AI chips, which support developments in AI and related technologies.
Analysts’ expectations remain optimistic, with all but one of the 21 analysts covering Nvidia’s stock recommending a “buy” or equivalent rating. The average price target stands at around $177, implying more than 31% upside from Friday’s closing price.
Key events are also anticipated to further boost the stock. In January, CEO Jensen Huang is set to deliver a keynote address at the Consumer Electronics Show (CES), where he may announce higher projections for Blackwell sales and highlight growth opportunities tied to rising enterprise and industrial demand for robotics.
The potential release of new graphics cards and product announcements are also expected to contribute to Nvidia’s stock performance. As the company continues to expand its AI capabilities, investors remain confident in its upward trajectory.
Source: https://www.investopedia.com/ai-darling-nvidia-stock-could-keep-rising-after-record-year-heres-why-8762853