Nvidia's profit has Wall Street scrambling to try to keep up

Nvidia’s profit has Wall Street scrambling to try to keep up

Nvidia Corp.’s Strong Rally in Early 2024 Has Wall Street Rushing to Keep Upwith at least five firms raising the AI ​​company’s price targets this month.

The chip giant’s shares have risen 46% this year and have totaled US$560,000 millions in market value until Monday, when they closed at a record $722. This strength, coupled with insatiable demand for its accelerators for artificial intelligence tasks, has led UBS Group AG and Mizuho Securities to follow their counterparts at Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc. in raising price targets ahead of the company’s results due on February 21.

This week, UBS raised its target to $850 from $580, and also raised its earnings per share estimates. For its part, Mizuho raised its target from US$625 to US$825. Mizuho’s Vijay Rakesh wrote in a note to clients that demand for accelerators Nvidia’s AI H100 continues to outperform the offering, calling the stock the best bet in AI.

The shares of the company based in Santa Clara (California), the most profitable of the S&P 500 and Nasdaq 100 indices this year, They have become one of the most appreciated values ​​on Wall Street. Analysts consulted by Bloomberg give it 58 “buy” ratings, five “hold” and only one “sell” rating.

On average, analysts have increased 2024 revenue estimates by more than 100% in the last 12 monthsaccording to data compiled by Bloomberg.

And yet they are struggling to keep up with the stock’s advance, which briefly saw Nvidia surpass Amazon.com Inc. in market capitalization on Monday. Wall Street’s average 12-month price target of $690 is 4.5% below Monday’s close.

Nvidia was down about 2% in early trading on Tuesday, sinking along with other big tech stocks after a report showed US consumer prices rose more than expected last month.