There’s no bigger high-flyer in the market right now than Nvidia (NASDAQ:NVDA). The chip maker, viewed as a pure play on the artificial intelligence (AI) trend, continues to make new highs. In fact, today’s move in NVDA stock saw Nvidia top both Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) to become the world’s fourth-largest company. What an incredible ride.
Now, this astronomical surge higher has Wall Street analysts scrambling to raise their targets, for fear of looking foolish. The latest price target increase comes courtesy of Mizuho, with analyst Vijay Rakesh raising his price target on the stock to $825 per share, up from $625 per share.
Nvidia stock is now hovering around $722 per share at the time of writing, meaning this price target increase now suggests another 14% upside from current levels could be feasible. Let’s dive into what investors may want to make of this latest price target boost.
NVDA Stock Surges as Wall Street Price Targets Catch Up
The price target game is interesting to watch. Analysts covering a particular stock, who hold a bullish angle on a given company, are often left playing catch up when parabolic moves (such as the one we’re seeing with Nvidia) play out. In order for a bullish thesis to hold water, investors need to see some sort of upside over the next 12-18 months. For Nvidia, that’s meant plenty of upward revisions, as this stock only seemingly heads in one direction — higher.
Of course, not all analysts are piling onto the same side of the ship. According to TipRanks, this stock does have four hold ratings (albeit with 34 buy ratings and no sell ratings), with the lowest price target currently pegged at $560 per share. And while I expect to see many more price target increases to bring the bottom end of this range up, it’s clear there are varying opinions on the stock here.
For now, Nvidia investors seem to have everything working in their favor. The stock is far from cheap, and some consolidation could be seen in the coming months. However, given the incredible slope of the recent increase in this chip maker, it’s a stock that’s simply too difficult to bet against (most investors don’t want to step in front of this freight train).
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
