Nvidia shares may rise another 24% - BofA
Kyiv • UNN
Nvidia's stock could rise another 24%, according to Bank of America, as the chipmaker is poised to dominate the computer market in the coming years due to the ongoing IT infrastructure upgrade cycle and the artificial intelligence boom.
Nvidia shares, according to Bank of America, have more room for growth even after the latest rally to all-time highs, as the chipmaker appears to be on track to dominate the computer market in the coming years, Business Insider reports, UNN writes.
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On Wednesday, the bank confirmed its recommendation to buy shares, adding that the firm, led by Jensen Huang, remains a favorite in the IT sector. BofA strategists have set a 12-month price target of 1 1,500 per share, suggesting growth potential of another 24% from where the stock was trading late Thursday morning
"NVDA is well positioned to enable the ІТ 3 trillion IT industry to provide artificial intelligence services. Despite the claims of competitors (AMD, Intel, custom chips or ASICs), we see NVDA as a multi – year leader in performance, pipeline, functionality, scale and developer support," the note says.
Vivek Daria, the bank's senior semiconductor analyst, added that he believes the company's stock will dominate the computer market over the next decade. this is because the IT sector is going through "infrastructure renewal cycles lasting several decades," and markets are seeing the beginning of the next ten-year cycle, Arya said.
"We think spending could be between.250 billion and мільярдів 500 billion a year, and Nvidia is leading the way," he told Yahoo Finance this week.
Nvidia's stock has been booming for the past 18 months, ever since OpenAI released ChatGPT and launched an arms race in artificial intelligence. Nvidia's chip turned out to be essentially the only game in the world when it comes to creating artificial intelligence models that caught the attention of consumers and Wall Street investors.
On Wednesday, the company's shares hit new records: the company's total market capitalization was ahead of Apple and the company became the second largest in the world.
Nvidia value surges past $3tn and overtakes AppleJun 6 2024, 05:47 AM • 15582 views
Nvidia shares will experience a 10-to-1 split on Friday, which could be a catalyst for further growth as the lower stock price helps attract more attention from retail investors.
Nvidia's" bearish " forecasts, as noted, are rare, although some forecasters doubt whether the company will be able to continue its rapid growth. Analysts warn that the stock could eventually fall sharply as it faces falling demand and increased competition in the GPU market.
