Nvidia Begins Post-Stock-Split Era With Price-Target Hikes

Nvidia Stock Boosted by Analysts' Price Target Hikes

Key Highlights:

• Nvidia Stock Split: Nvidia (NVDA) began trading on Monday after a 10-for-1 stock split.

• Analysts' Price Target Increases: Barclays, Susquehanna, and TD Cowen raised their price targets for Nvidia stock.

• Nvidia Stock Performance: Nvidia stock increased by 0.8%, closing at 121.79.

Barclays Analyst Tom O'Malley

• New Price Target: Raised to $145 from a split-adjusted $120.

• Rating: Reiterated an "overweight" (buy) rating.

• Reason: Incremental sales opportunities from sovereign nations purchasing Nvidia's AI chips, expected to accelerate significantly next year.

Susquehanna Financial Group Analyst Christopher Rolland

• New Price Target: Increased to $145 from $120 on a split-adjusted basis.

• Rating: Maintained a positive rating.

• Supply Chain Checks: Indicate a smooth transition to Nvidia's B100 AI processors for data centers in the second half of 2024.

• Sales Transition: Confidence in a smooth transition from Hopper series GPUs to next-generation Blackwell series GPUs, alleviating concerns of a potential "air pocket" in sales.

TD Cowen Analyst Matthew Ramsay

• New Price Target: Raised to $140 from $120.

• Rating: Maintained a "buy" rating.

• Thesis: Nvidia is seen as the leader in accelerated computing.

AMD Stock Downgrade

• Analyst: Morgan Stanley's Joseph Moore.

• Rating Change: Downgraded AMD to "equal weight" from "overweight."

• Price Target: Unchanged at $176.

• Reason: Investor expectations for AMD’s AI business seem too high, with limited potential for upward revisions in AI from this point forward.

• AMD Stock Performance: Dropped by 4.5%, closing at 160.34.

Nvidia's Position in the Market

• IBD Lists: Nvidia stock is on IBD’s Leaderboard, IBD 50, Big Cap 20, Sector Leaders, and Tech Leaders.

• Performance: Nvidia continues to be recognized for its leadership in AI and accelerated computing.

Summary

Nvidia’s stock received a boost due to increased price targets from multiple analysts following its stock split. This reflects strong confidence in Nvidia’s future sales, particularly in AI, despite transitions in product lines. Conversely, AMD faced a downgrade, reflecting concerns about high investor expectations and limited revision potential for its AI business.

For more detailed information, please refer to the full article from Investor's Business Daily: