Nvidia (NVDA) stock has gained more than 8% over the past two sessions amid a string of bullish Wall Street updates ahead of the chipmaker’s earnings next week.
“We expect a significant beat” for Nvidia’s fiscal second quarter, wrote Baird’s Tristan Gerra and his team in a note to investors on Tuesday.
The analysts cited “very significant momentum in AI demand for Nvidia” and raised their price target on the stock to $570 from $475 while maintaining an Outperform rating.
On Monday, shares of the Santa Clara, Calif.-based chipmaker rose 7% after a bullish note from Morgan Stanley analysts.
“NVIDIA remains our Top Pick, with a backdrop of the massive shift in spending towards AI, and a fairly exceptional supply demand imbalance that should persist for the next several quarters,” wrote Joseph Moore and his team.
Meanwhile, UBS analysts raised their price target to $540 from $475, writing that Nvidia “is quite literally serving as ‘kingmaker’ as a huge wave of capital and new financing vehicles are chasing new AI software and specialized cloud infrastructure models.”
Nvidia stock has been on fire since the start of 2023. The chipmaker led the tech sector higher earlier in the year as it moved center stage amid an AI craze, thanks to its high-powered graphics cards and server products.
Information technology stocks have pulled back a bit in recent weeks amid concerns of an overbought market and rising bond yields. It’s worth noting August is historically a weak month for stocks. Since the start of August, Nvidia shares are down 6%.
“We think the recent selloff is a good entry point,” wrote Morgan Stanley’s Moore.
Nvidia shares are up more than 205% since the start of 2023. In May, the stock skyrocketed more than 26% in one session after the company posted a better than expected quarter with guidance that blew past Wall Street estimates.
The company said it expects revenue of $11 billion for its fiscal second quarter, plus or minus 2% versus Wall Street estimates of $7.2 billion.
Analysts are overwhelmingly bullish on the stock, with 52 Buy recommendations, six Holds, and one Sell. The average price target on the stock is $507.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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