Nvidia (NVDA) stock received a series of price-target increases on Tuesday, highlighting the company’s ongoing strength following its impressive first-quarter earnings report.
Fresh Price-Target Hikes
Three Wall Street firms raised their price targets for Nvidia stock, following a similar move by three other firms just the day before.
Argus Research boosted its price target from $110 to $150, maintaining its buy rating. Oppenheimer also upped its target from $110 to $150, keeping its outperform rating. Evercore ISI raised its target to $145 from $131, reiterating its outperform rating as well.
Nvidia Takes a Breather After Breakout
Despite the positive outlook, Nvidia stock dipped 0.7% to close at $120.91 on Tuesday, following a 0.8% gain on Monday, closing at $121.78.
The stock broke out of a 10-week consolidation pattern on May 23, with a split-adjusted buy point of $97.40, according to IBD MarketSurge charts. Nvidia remains in the 20%-to-25% profit-taking zone but is also subject to the eight-week hold rule, according to IBD trading guidelines. This breakout followed a stellar fiscal first-quarter earnings report from the Santa Clara, California-based company.
Continued Momentum Expected
Argus analyst Jim Kelleher believes Nvidia is well-positioned for sustained momentum this year, suggesting that its shares have “much further to go.” In addition to growth in AI and data center markets, Nvidia is expected to see acceleration in its gaming, professional visualization, and automotive markets.
Oppenheimer analyst Rick Schafer highlighted Nvidia’s clear product roadmap for its graphics processing units and networking products. “We see NVDA as best positioned in AI, benefiting from their full stack AI hardware, networking, and software solutions,” Schafer mentioned in a client note.
Nvidia’s Broad Market Presence
On Tuesday, Nvidia also announced a collaboration with cloud security software firm Zscaler (ZS) to enhance AI-powered co-pilot technologies for enterprises. This news pushed Zscaler stock up by 2%, closing at $187.65.
Nvidia stock features prominently on five IBD lists: Leaderboard, IBD 50, Big Cap 20, Sector Leaders, and Tech Leaders. It is also one of the stocks in the Magnificent Seven.
Analyst Optimism
Overall, the analyst community remains optimistic about Nvidia’s prospects. The combination of a robust product lineup and strong market demand positions Nvidia favorably for future growth. The recent price-target hikes reflect confidence in Nvidia’s ability to capitalize on its leading position in the AI and data center markets.
Nvidia’s recent performance and the subsequent analyst upgrades underscore the company’s potential for continued success. With strong fundamentals and a strategic focus on high-growth markets, Nvidia stock appears poised to maintain its upward trajectory, despite occasional market fluctuations.
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