NVIDIA (NVDA) stock closed at a record high Monday as Wall Street analysts maintained their bullish stances on the stock ahead of its November earnings release.
Shares of the leading AI chipmaker rose more than 4% to close at $143.71 per share.
The move comes as Wall Street analysts reiterate their buy ratings on the stock. Citing strong demand for artificial intelligence, Bank of America (BAC) on Friday raised its price target from $165 to $190 (one way inside the call with analyst Vivek Arya below from Opening offer podcast), while investment research firm CFRA last week raised its price target for Nvidia from $139 to $160. Overall, analysts expect shares to rise to $148.37 over the next 12 months, according to Bloomberg consensus estimates.
In addition to the growth of the AI market as a whole, Bank of America analyst Vivek Arya said that Nvidia’s strength in enterprise AI, i.e. say its partnerships with companies such as Microsoft (MSFT) and Accenture (ACN) – is another contributing factor to its higher price target. Arya said “NVDA is the partner of choice” for enterprise AI hardware and software.
Wedbush analyst and Nvidia bull Dan Ives echoed that sentiment in a note to investors on Sunday, writing that there was “a tidal wave of enterprise spending as use cases for AI is exploding,” with Nvidia leading the market.
Ives predicts that the AI infrastructure market will grow tenfold by 2027, with companies spending $1 trillion in AI capital expenditures during this period.
“In a nutshell, we believe the stage is set for tech stocks to see an additional 20% rise in 2025, as this tech bull market has just entered its next phase led by the AI revolution.” , added Ives. “In our view, while the Fed and Powell have launched their aggressive rate-cutting cycle, a macroeconomic soft landing remains the way forward, and AI technology spending remains a generational spending cycle that begins all just hitting the shores of the tech sector.”
Despite a short-lived slump last week And looming fears of a slowdown in AI spendingNvidia shares are up nearly 3% over the past week and more than 20% over the past month.
Nvidia CEO Jensen Huang said there was “crazy” demand for its AI chipswhich are used in data centers by large technology companies to power generative artificial intelligence software. Recent positive news from the company’s industrial partners has also boosted AI actions across the boardincluding Nvidia. Micron (UM), which supplies the memory chips used in Nvidia’s GPUs, and TSMC (TSM), which makes Nvidia’s AI chips, both beat Wall Street expectations in their recent earnings reports.