Nvidia (NVDA), a prominent AI chipmaker, commenced trading on Monday following its 10-for-1 stock split, prompting three Wall Street analysts to raise their price targets. This development led to an increase in Nvidia's stock value.
Barclays, Susquehanna, and TD Cowen all adjusted their price targets for the leading graphics-chip manufacturer.
Barclays' analyst Tom O'Malley revised his price target for Nvidia stock to 145 from a split-adjusted 120, maintaining his overweight rating on the stock. O'Malley cited Nvidia's expanding sales prospects in the AI chip market, particularly from sovereign nations, as the basis for the price adjustment, predicting significant acceleration in this segment next year.
Susquehanna Financial Group's analyst Christopher Rolland also raised his price target on Nvidia stock to 145 from 120 on a split-adjusted basis, reaffirming his positive outlook on Nvidia shares. Rolland's analysis suggests a seamless transition to Nvidia's B100 AI processors for data centers by the second half of 2024, alleviating concerns among investors about a potential sales slowdown during the shift from Hopper series GPUs to Blackwell series GPUs.
TD Cowen's analyst Matthew Ramsay maintained his buy rating on Nvidia stock while increasing his price target to 140 from 120. Ramsay emphasized Nvidia's leadership position in accelerated computing, reiterating the company's strong potential in the market.
Meanwhile, Nvidia's competitor, Advanced Micro Devices (AMD), experienced a decline in its stock price on Monday following a downgrade in stock ratings.
Morgan Stanley's analyst Joseph Moore lowered his rating on AMD stock from overweight to equal weight, although he retained the price target at 176. Moore expressed concerns about investor expectations regarding AMD's AI business, which he believes may be overestimated, leading to limited potential for upward revisions in this segment.
Consequently, AMD stock dropped by 4.5% to close at 160.34 on Monday. Despite acknowledging the strength of the AMD story, Moore's analysis suggests caution regarding the AI business's future performance.
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