Nvidia Begins Post-Stock-Split Era with Increased Price Targets

 

Nvidia Stock Rises Post-Split with Analysts Raising Price Targets

On Monday, AI chipmaker Nvidia (NVDA) began trading after its 10-for-1 stock split and received price-target hikes from three Wall Street analysts, resulting in a rise in Nvidia stock.

Barclays, Susquehanna, and TD Cowen increased 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, reiterating his overweight (buy) rating. O'Malley cited Nvidia's potential for increased sales from sovereign nations purchasing its AI chips, predicting significant market acceleration next year.

Nvidia stock advanced 0.8% to close at 121.79 on Monday's stock market.

No 'Air Pocket' in Sales Expected

Susquehanna Financial Group analyst Christopher Rolland also raised his price target on Nvidia stock to 145 from 120 on a split-adjusted basis, maintaining a positive rating. Rolland noted that supply-chain checks indicate a smooth transition to Nvidia's B100 AI processors for data centers in the second half of 2024. He addressed concerns about a potential "air pocket" in sales during the transition from Hopper series GPUs to next-generation Blackwell series GPUs, expressing confidence in a seamless shift based on supply-chain discussions.

TD Cowen analyst Matthew Ramsay maintained his buy rating on Nvidia stock and increased his price target to 140 from 120. Ramsay reaffirmed his view of Nvidia as the leader in accelerated computing.

AMD Stock Downgraded

In contrast, Nvidia's rival Advanced Micro Devices (AMD) saw its shares fall on Monday following a stock ratings downgrade. Morgan Stanley analyst Joseph Moore downgraded AMD stock to equal weight from overweight, keeping the price target unchanged at 176. AMD stock dropped 4.5% to close at 160.34. Moore expressed concerns over investor expectations for AMD's AI business, seeing limited potential for upward revisions.

Nvidia Stock on Five IBD Lists

Nvidia stock, along with AMD stock, is on IBD's Leaderboard. Nvidia also appears on several other IBD lists, including IBD 50, Big Cap 20, Sector Leaders, and Tech Leaders. Additionally, Nvidia is part of the Magnificent Seven stocks.