In response to Nvidia's performance, several Wall Street firms have raised their price targets. UBS Group AG and Mizuho Securities joined others, including Morgan Stanley, Bank of America Corp., and Goldman Sachs Group Inc., in adjusting their price targets ahead of the company's February 21 earnings announcement. Despite the stock's rise, analysts struggle to keep pace, with the average 12-month price target of $690 lagging behind the closing price on February 13.
Key takeaways:
- Nvidia is expected to surpass Google's parent Alphabet as the third most valuable company on Wall Street, after its market capitalisation reached $1.78 trillion, surpassing Amazon's $1.75 trillion.
- The surge in Nvidia's stock is attributed to the high demand for its AI chips, with the company controlling around 80 percent of the high-end AI chip market.
- Several Wall Street firms have raised their price targets for Nvidia due to its remarkable performance, with UBS Group AG and Mizuho Securities among those adjusting their price targets ahead of the company's February 21 earnings announcement.
- Nvidia's success is attributed to the ongoing AI boom, with massive capital expenditures in data centres, and the company has gained over $600 billion in market value in the new year, outpacing its growth in the last seven months of 2023.