By Tigress Financial Partners is becoming increasingly optimistic about Nvidia’s potential to thrive in the artificial intelligence (AI) trend. Analyst Ivan Feinseth has reiterated his Buy rating on Nvidia stock (ticker: NVDA) and raised the price target to $560 from $320.
Feinseth emphasized that Nvidia is one of the prime ways to capitalize on the accelerating adoption of AI across various technologies and applications. He praised the chip maker’s innovative capabilities and industry-leading position, which he believes will continue to drive market penetration in multiple secular technology trends, including AI, autonomous-vehicle technology, and emerging opportunities in healthcare.
As of early trading Friday, Nvidia stock has experienced a 1.6% increase to $427.64.
Nvidia’s products have significant exposure to generative AI, a prevailing trend this year. This technology utilizes a brute-force approach to create content by processing vast amounts of text, images, and videos. OpenAI’s release of ChatGPT last year sparked significant interest in this form of AI.
Feinseth also pointed out that Nvidia will benefit from a substantial shift in technology infrastructure spending, moving away from traditional server processors towards Nvidia’s chips. The company’s semiconductors are better equipped for the computations required for advanced AI products.
Furthermore, Nvidia’s strong balance sheet and cash flow position it favorably to fund growth-driving initiatives through continuous innovation and strategic acquisitions.
Overall, Wall Street appears positive on Nvidia stock. According to FactSet, 86% of analysts covering the company have Buy ratings or the equivalent, while 12% have Hold ratings.
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