Thursday, June 13, 2024

Nvidia Begins Post-Stock-Split Era With Price-Target Hikes

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AI chipmaker Nvidia (NVDA) began trading Monday after its 10-for-1 stock split and received price-target hikes from three Wall Street analysts. Nvidia stock rose in late morning trades.




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Barclays, Susquehanna and TD Cowen upped their price targets on the graphics-chip leader.

Barclays analyst Tom O’Malley raised his price target on Nvidia stock to 145 from a split-adjusted 120. He reiterated his overweight, or buy, rating on Nvidia.

The price hike reflects Nvidia’s incremental sales opportunity from sovereign nations buying its AI chips, O’Malley said in a client note. He believes that particular market will accelerate significantly next year.

In late morning trades on the stock market today, Nvidia stock advanced 0.8% to 121.85.

No ‘Air Pocket’ In Sales Expected

Meanwhile, Susquehanna Financial Group analyst Christopher Rolland upped his price target on Nvidia stock to 145 from 120 on a split-adjusted basis. He kept his positive rating on Nvidia shares.

Supply-chain checks indicate a smooth transition to Nvidia’s B100 AI processors for data centers in the second half of 2024, he said.

Some investors have expressed concerns about a possible “air pocket” in sales as customers move from Hopper series graphics processing units to next-generation Blackwell series GPUs, Rolland said.

“We and many investors have been fearful of an ‘air pocket’ in the transition from Hopper to Blackwell,” Rolland said in a client note. “Discussions and broad checks across the supply chain quell our fears and are now giving us confidence in a sustained and smooth transition.

TD Cowen analyst Matthew Ramsay maintained his buy rating on Nvidia stock and increased his price target to 140 from 120.

“Reiterating our thesis, we see Nvidia as the leader in accelerated computing,” Ramsay said.

AMD Stock Downgraded

Elsewhere, Nvidia rival Advanced Micro Devices (AMD) saw its shares fall Monday on a stock ratings downgrade.

Morgan Stanley analyst Joseph Moore cut his rating on AMD stock to equal weight from overweight. But he left his price target unchanged at 176.

In late morning trades on Monday, AMD stock dropped 2.8% to 163.12.

“We like the AMD story, but investor expectations for the AI business still seem too high to us,” Moore said in a client note. “We see limited upward revision potential for AI from here.”

Nvidia Stock On Five IBD Lists

Nvidia stock and AMD stock are both on IBD’s Leaderboard.

Further, Nvidia is on several other IBD lists: IBD 50, Big Cap 20, Sector Leaders and Tech Leaders.

Also, Nvidia stock is one of the Magnificent Seven stocks.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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