Nvidia (NVDA) stock is trending upwards after Bank of America analysts raised the company's price target from $700 to $800 per share, maintaining a “buy” rating. The more bullish outlook comes ahead of NVIDIA's next earnings report, which will be released on February 21st. Bank of America analysts expect the company to outperform current expectations.
Yahoo Finance's Julie Hyman and Jared Blikre break down this trend ticker.
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Editor's note: This article was written by angel smith
video transcript
Julie Hyman: Top trending tickers. As I mentioned earlier, NVIDIA's stock price has skyrocketed by nearly 5%. Bank of America raised its price target to $800 per share on expectations that the semiconductor maker will beat earnings estimates later this month.
The report will not be published until February 21st. So NVIDIA's big report arrives just after earnings season is over and everyone has calmed down a bit. They talk a lot about the advantages Bank of America analysts have, about the power that NVIDIA has with its AI reasoning in chips, and about all the learning that AI is effectively doing. I'm talking.
They say, “We expect NVIDIA to hold a 90% share in training and achieve over 50% share in inference,” but still. And I think Bank of America is probably not the only company here. Many people we spoke to said NVIDIA will still have the upper hand in this space.
Jared Breichle: Well, the question is, how dominant can you be? They already have a huge market share at the cutting edge here. And I don't think Bank of America will ever turn back. However, they have tempered some of their very bullish comments, saying that NVIDIA's upcoming earnings will have fewer surprises on the upside compared to the past few quarters, although that may perhaps disappoint some bulls. It said a more measured pace could also be seen as creating more fertile ground for continued growth.
Therefore, they are positive that we will not see such explosive growth for the time being and that we will move forward at a more measured pace. And we'll have to see how it works out. Nevertheless, NVIDIA rose his 33%. Just this year, I was watching this on Wi-Fi Interactive. I remember last year.
