Nvidia bulls pile in after HSBC raises price target
Posted on August 21, 2023 at 5:07pm Eastern Daylight Time
Nvidia Shares Surge 216% Since Jan. 1
Nvidia's stock saw an upward surge on Monday following an increase in the chipmaker's price target by HSBC analysts. This boost in target came as a result of a more optimistic sales projection for fiscal year 2024.
Experts are increasing their target price from $600 to $780 due to optimistic forecasts for Nvidia's AI data center sales. Additionally, they are anticipating a remarkable 29% increase in sales for the fiscal year 2024, reaching a total of $19.4 billion. These projections differ from the consensus estimate of approximately $13.7 billion in sales.
Additionally, HSBC has modified its projected earnings per share (EPS) figures. Originally, the estimates were 19% and 29% higher than the expectations, but they have now been adjusted to be 21% and 23% above the consensus estimates.
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A Nvidia Corp. microchip at the Taipei Computex exhibition in Taiwan's capital city, Taipei, on May 29, 2023. (I-Hwa Cheng/Bloomberg via Getty Images / Getty Images)
Shares of Nvidia on Wall Street have experienced a significant increase of approximately 48% in the last quarter and a remarkable surge of nearly 216% since the beginning of the year. When considering the past five days, the chipmaker's shares have witnessed a notable rise of almost 5.9%.
Nvidia's market value skyrocketed past $1 trillion as the year progressed, primarily driven by the swift progress of artificial intelligence implementations.
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HSBC analyst Frank Lee stated that Nvidia is expected to surpass its initial projections, as our sales for the fiscal year 2024 are now 9% higher than both the consensus estimate and the guidance provided by the company.
The emblem of Nvidia Corporation is spotted at the yearly Computex computer fair in Taipei, Taiwan on May 30, 2017.
Increasing need for AI technology leading to limited availability of high-performance chips.
An alternative optimistic situation for Nvidia revolves around the shift in their range of products towards more downstream ventures, like their system product offerings.
In the previous week, Nvidia stocks soared to their peak for the year 2023 following a modification in HSBC analysts' advice from "trim down" to "purchase," driven by growing prospects in artificial intelligence.
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