NVDA Stock Alert: Can AI Really Take NVDA to $375?


Editor’s note: This article was corrected on May 30 to reflect that Shrey Dua did have a LONG position in NVDA stock at the time of writing. 

  • Keybanc recently raised its price target on Nvidia (NVDA) stock from $313 to $375 per share, the highest NVDA target on Wall Street.
  • NVDA stock has already enjoyed a blockbuster year, up over 100% largely on enthusiasm for artificial intelligence (AI) applications.
  • With first-quarter earnings due Wednesday, the stakes couldn’t be higher for this tech giant.
Closeup of mobile phone screen with logo lettering of nvidia corporation on computer keyboard. NVDA stock.
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Nvidia (NASDAQ:NVDA) is the talk of Wall Street this week as the chipmaker snags a tidy new $375 price target on excitement surrounding its artificial intelligence (AI) potential. Just how high can AI take NVDA stock?

Well, according to analysts at KeyBanc, quite high. Analyst John Vinh raised the price target on Nvidia from $320 to $375 per share. Not only does this represent a roughly 20% upside from the current $313 price, it’s the highest price target for NVDA on Wall Street. Vinh wrote:

“While we do recognize our valuation framework for NVDA is aggressive, as our $375 price target is based on 31x LT earnings power of $12, we believe NVDA’s outsized share position and ability to monetize growth in generative AI at 70%+ GM should warrant a meaningful premium vs. its semiconductor peers.”

NVDA Stock Enjoys AI-Fueled Surge

While Keybanc’s upgrade may seem early, according to many tech analysts, it’s not wrong. Indeed, NVDA stock is already up more than 100% so far this year, climbing from $143 in January to its current level. Few tech companies have caught ahold of the AI wave as well as Nvidia. That doesn’t seem to be changing anytime soon.

Nvidia’s AI applications have largely overshadowed even its historically strong performing gaming GPUs. Nvidia chips — especially its data center-designed H100 chip line — are apparently extremely conducive to generative AI. That is, AI using text, image and video to produce its own content. As such, many view Nvidia as a destined winner of the current AI race.

“Nvidia remains uniquely positioned to benefit from AI/ML secular data center growth within the industry,” Vinh wrote according to Barron’s.

With the company’s first-quarter earnings due this Wednesday, May 24, anticipation couldn’t be higher for NVDA stock.

On the date of publication, Shrey Dua held a LONG position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/nvda-stock-alert-can-ai-really-take-nvda-to-375/.

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