Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Nvidia shares target raised to $1,050 by Baird on strong AI demand

Published 20/02/2024, 13:06
Updated 20/02/2024, 13:06
© Reuters.

On Tuesday, Baird reaffirmed its positive stance on NVIDIA Corporation (NASDAQ:NVDA), raising its price target to $1,050 from the previous $750 while maintaining an Outperform rating on the stock. The adjustment follows Baird's recent research findings, which highlighted continued robust demand for NVIDIA's artificial intelligence (AI) solutions. The firm's analysis indicates that enterprise customer momentum is accelerating, contributing to the optimistic outlook.

The report from Baird cited the forthcoming Blackwell architecture as a catalyst for a significant performance boost for NVIDIA's offerings. Additionally, average selling prices (ASPs) are expected to rise. The firm also noted that Taiwan Semiconductor Manufacturing Company (TSMC) is on track to double its CoWoS (Chip on Wafer on Substrate) capacity within the year, which is anticipated to notably improve supply in the second half of 2024.

Baird's findings suggest that NVIDIA's GH200 performance is substantially higher than that of the combined x86 processor and H100, which is leading to increased engagements with hyperscalers and high-performance computing (HPC) original design manufacturers (ODMs). The continued dominance of NVIDIA's CUDA ecosystem was highlighted as a significant competitive edge for the company.

Concluding the report, Baird stated that based on these factors, it is raising its estimates and price target for NVIDIA, expressing confidence in the company's continued Outperform rating. The analysis underscores the expected positive trajectory for NVIDIA's business, particularly in the field of AI, as the company prepares to roll out its new architectural advancements and capitalizes on its established market position.

InvestingPro Insights

Following Baird's optimistic assessment of NVIDIA Corporation (NASDAQ:NVDA), InvestingPro data and insights offer additional context for investors considering the stock. NVIDIA is currently trading with an impressive market capitalization of approximately $1790.0 billion. The company has witnessed substantial revenue growth over the last twelve months as of Q3 2024, with a remarkable increase of 57.07%. This growth is further emphasized by a quarterly revenue surge of 205.51% in Q3 2024, signaling strong sales momentum.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

An InvestingPro Tip notes that NVIDIA has a perfect Piotroski Score of 9, indicating a very healthy financial state, which may reassure investors about the company's financial robustness. Moreover, analysts have revised their earnings upwards for the upcoming period, reflecting a positive sentiment around NVIDIA's profitability prospects. With a P/E ratio of 95.77, NVIDIA is trading at a high earnings multiple, which often suggests that investors are willing to pay a premium for future growth expectations. This aligns with the revenue and earnings growth anticipated by Baird's report.

For investors seeking more comprehensive analysis, InvestingPro offers additional tips on NVIDIA's financial health and market performance. With a total of 25 InvestingPro Tips available, investors can gain deeper insights into NVIDIA's market position, financial stability, and potential for growth. Interested readers can unlock these insights and benefit from an exclusive 10% discount on a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.