On Monday, AI chipmaker Nvidia (NVDA) began trading after its 10-for-1 stock split, accompanied by price-target increases from three Wall Street analysts, leading to a rise in Nvidia's stock price.
Barclays, Susquehanna, and TD Cowen all raised their price targets for the graphics-chip leader.
Barclays analyst Tom O'Malley increased his price target for Nvidia stock to 145 from a split-adjusted 120, maintaining his overweight (buy) rating. O'Malley cited Nvidia's growing sales opportunity from sovereign nations purchasing its AI chips and expects this market to accelerate significantly next year.
No 'Air Pocket' In Sales Expected
Susquehanna Financial Group analyst Christopher Rolland also raised his price target for Nvidia to 145 from 120 on a split-adjusted basis, keeping his positive rating. Rolland noted a smooth transition to Nvidia's B100 AI processors for data centers in the second half of 2024 based on supply-chain checks. Despite concerns about a potential sales "air pocket" during the transition from Hopper series GPUs to Blackwell series GPUs, Rolland's discussions and checks across the supply chain alleviated these fears, giving confidence in a sustained and smooth transition.
TD Cowen analyst Matthew Ramsay maintained his buy rating on Nvidia stock and raised his price target to 140 from 120. "Reiterating our thesis, we see Nvidia as the leader in accelerated computing," Ramsay said.
AMD Stock Downgraded
In contrast, Nvidia's rival Advanced Micro Devices (AMD) saw its shares fall on Monday due to a stock ratings downgrade. Morgan Stanley analyst Joseph Moore downgraded AMD stock to equal weight from overweight, while leaving the price target unchanged at 176. On Monday, AMD stock dropped 4.5% to close at 160.34.
"We like the AMD story, but investor expectations for the AI business still seem too high to us," Moore commented in a client note. "We see limited upward revision potential for AI from here."
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