Important points
Nvidia (NVDA) stock rose again on Monday following bullish comments from Wall Street analysts.
The stock rose 2.4% to a closing high of $138.07, nearly tripling in value this year, as demand for the company’s chips that support artificial intelligence (AI) soared. The stock is just shy of its June intraday high of $140.76.
Several stocks tied to chipmakers rose on Monday, including partners Arm Holdings (ARM), TSMC (TSM), and Nvidia-backed SoundHound AI (SOUN). These moves helped boost the tech sector and pushed the S&P 500 index to record highs.
“NVIDIA is still king”
Citi analysts said in a note to clients on Sunday that NVIDIA “remains the king” when it comes to its customer base in the AI accelerator market. They said they expect the chipmaker’s GPU sales to hyperscalers such as Alphabet (GOOGL)’s Google and Microsoft (MSFT) to double this year.
All but one of the other 22 analysts covering Citi and Nvidia tracked by Visible Alpha rated the company’s stock a “buy” or equivalent rating as of Monday, with a consensus price target of The stock traded at $152.41, suggesting an upside of about 10% from Monday’s closing price.
Supply “to keep it steady”
Citi’s comments come after Goldman Sachs analysts on Friday finished an investor meeting with NVIDIA CEO Jensen Huang, citing the company’s large customer base, “robust and growing” software products, and capabilities. This was made in response to the company’s statement that it had become “better aware of the company’s competitiveness.” To innovate.
Analysts said orders for Nvidia’s Blackwell chips are full, with lead times extending up to a year, and Nvidia “expects supply to be tight for some time.”
Analysts at Goldman Sachs also maintained a buy rating on the stock and raised their price target to $150 from $135.
Nvidia approaches top market cap position
A week ago, NVIDIA overtook Microsoft to become the world’s second-largest company by market capitalization, behind Apple (AAPL).
Monday’s gains brought Nvidia’s market cap to $3.386 trillion, compared to Apple’s $3.516 trillion. Apple, Nvidia, and Microsoft are the only companies with market capitalizations above $3 trillion.
