Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Bernstein raised its price target on NVIDIA (NASDAQ:NVDA) to $275.00 from $225.00 on Thursday, while maintaining an Outperform rating on the stock. NVIDIA currently trades at $186.52, with analyst targets ranging from $140 to $350, according to InvestingPro data. The chipmaker’s stock has delivered a 38.9% return year-to-date.
The price target increase follows positive developments in the artificial intelligence space, including capital expenditure trends, partnership announcements, and sovereign deals, according to the research firm.
Bernstein noted that AI stocks had recently experienced a pullback due to sustainability concerns and bubble fears, making NVIDIA’s guidance particularly significant for investor confidence.
The firm highlighted CEO Jensen Huang’s comments about "off the charts demand" and the company’s competitive positioning as factors that could reassure investors about NVIDIA’s outlook.
Bernstein indicated that Huang’s statements regarding NVIDIA’s revenue and margin trajectory for next year would likely give investors more confidence in the sustainability of AI demand.
In other recent news, Nvidia reported fiscal third-quarter results that exceeded expectations, with revenue reaching $57 billion, surpassing the top end of its guidance by 3.5%. The company’s strong performance was primarily driven by its data center segment, particularly with robust Blackwell Ultra revenues. Following these results, KeyBanc raised its price target for Nvidia to $275, maintaining an Overweight rating, while Jefferies increased its target to $250, keeping a Buy rating. Similarly, Rosenblatt Securities adjusted its price target to $245, citing ongoing strong demand for AI computing. Goldman Sachs also raised its target to $250, highlighting Nvidia’s impressive quarterly performance. CLSA reiterated its High-Conviction Outperform rating with a $270 price target, noting Nvidia’s best quarterly beat in the past four quarters. These recent developments reflect the company’s robust standing in the market, with analysts expressing confidence in its future prospects.
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