A Wall Street analyst said Monday that the bull case stays in place for Nvidia (NVDA) stock, despite its recent volatility. The following catalyst for Nvidia shares might be the chipmaker’s fiscal second-quarter results due Aug. 28, he said.
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Nvidia Is Dominating The AI Game. Can It Proceed?
Piper Sandler analyst Harsh Kumar raised his Nvidia stock price goal to 140 from 120 and reiterated his obese, or buy, rating.
On the stock market today, Nvidia stock rose 4.8% to shut at 123.54.
“We view the setup for Nvidia positively ahead of the July-quarter earnings and the October-quarter guidance,” Kumar said in a client note. “We see the strong business trends exhibited over the prior 12 months by Nvidia set to proceed, aided by official launch of the Blackwell architecture within the October quarter.”
Nvidia stays the premier player in accelerated computing and processors for generative artificial intelligence, he said.
Nvidia Stock Bounces Off 50-Day Line
Since hitting a record high of 140.76 on June 20, Nvidia stock has had a rocky ride. Throughout the last three trading sessions, Nvidia stock tested support at its 50-day moving average line.
On Monday, Nvidia stock bounced off that key support level and surged higher.
“Overall demand appears to be extremely strong for Nvidia and the important focus of the corporate appears to be supply procurement,” Kumar said.
He added, “Importantly, Nvidia is seeing strength in bookings for its recent Blackwell launch, but additionally existing products akin to H100 in addition to the H200 (launched in fiscal Q2 2025). In our view, Nvidia continues to have demand visibility that extends into the center of calendar 12 months 2025 at a minimum.”
Elsewhere on Wall Street, Loop Capital analyst Ananda Baruah raised his price goal on Nvidia stock to 175 from 120. He maintained his buy rating.
Nvidia Put On ‘Positive Catalyst Watch’
Meanwhile, Citi analyst Atif Malik opened a “30-day positive catalyst watch” on Nvidia shares ahead of the SIGGRAPH 2024 conference. Nvidia Chief Executive Jensen Huang is about to talk on the conference. The show focuses on computer graphics and interactive digital technologies.
Citi has a buy rating on Nvidia stock with a price goal of 150.
On July 29 on the show, Huang can have a public discussion with Meta (META) Chief Executive Mark Zuckerberg to debate the long run of artificial intelligence.
Malik said the discussion should shed positive light on how Nvidia’s end customers get a return on investment from buying Nvidia processors for AI applications.
Nvidia stock is on 4 IBD lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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