Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

NVIDIA stock price target raised to $985 on AI adoption growth

EditorNatashya Angelica
Published 28/02/2024, 23:12
Updated 28/02/2024, 23:12
© Reuters

On Wednesday, Tigress Financial Partners updated their outlook on NVIDIA Corporation (NASDAQ:NVDA), raising their 12-month price target to $985 from a previous target, while maintaining a Buy rating on the stock.

The firm cited NVIDIA's strong position at the forefront of accelerating artificial intelligence (AI) adoption across various industries as the key driver for the revised target and optimistic outlook.

NVIDIA recently reported a record-breaking Q4 revenue of $22.1 billion, marking a 256% year-over-year increase. This surge was attributed to accelerated computing and generative AI, which have reached a tipping point, resulting in high demand globally.

The data center segment was particularly strong, with revenue climbing 409% year-over-year to a record $18.4 billion, fueled by substantial demand from large cloud service providers, specialized GPU cloud services, enterprise software firms, and consumer internet companies.

The company has also announced significant partnerships and collaborations that are expected to bolster its growth. These include working with Google (NASDAQ:GOOGL) to optimize NVIDIA's data center and PC AI platforms for Google's open language model Gemma, and expanding its strategic collaboration with Amazon (NASDAQ:AMZN) AWS to host NVIDIA DGX Cloud on AWS.

Moreover, NVIDIA is making inroads into the healthcare sector, with Amgen (NASDAQ:AMGN) set to use the NVIDIA DGX SuperPOD for drug discovery, diagnostics, and consumer medicine insights.

NVIDIA's gaming revenue saw a 56% year-over-year increase to $2.9 billion, following the launch of the GeForce RTX 40 SUPER Series GPUs. Despite a 4% decline in automotive revenue, NVIDIA announced further adoption of its NVIDIA DRIVE platform. Professional Visualization revenue grew by 105% year-over-year to $463 million.

The firm's analyst highlighted NVIDIA's industry-leading AI capabilities, which are well-positioned to capitalize on the rollout of AI-integrated functionality and its cloud-based AI services.

The company's strategic moves in generative AI applications, which are crucial for creating interactive digital content, along with its visual data processing leadership and ongoing data center adoption, are expected to continue driving significant returns on capital and shareholder value.

The new price target reflects over a 25% potential return from current stock levels.

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.