Artificial intelligence (AI) stocks like Nvidia (NASDAQ:NVDA) have been red-hot so far this year, although they have retreated in recent weeks. However, Keybanc kept its “overweight” rating on NVDA stock this morning, citing the chipmaker’s ability to profit from the rapid proliferation of AI.
Meanwhile, other analyst firms have also been bullish on the shares of late. Here’s what investor should know about NVDA stock right now.
Keybanc and Other Firms Are Enthusiastic About Nvidia Stock
Keybanc identified Nvidia as “a top idea” in a note to investors today. The firm indicated that NVDA stock is attractive because Nvidia is “indexed to [generative] AI.” Meanwhile, Melius Research was also upbeat on NVDA this morning. According to the firm, Nvidia’s upcoming Blackwell AI chip “could drive double-digit growth […] through 2025.” Melius maintained a $1,000 price target and a “buy” rating on shares of the chipmaker.
Finally, just yesterday, Bernstein analyst Stacy Rasgon said that demand for Nvidia’s chips is still strong while the firm does not appear to have experienced order cancellations. Moreover, sales for its recently released offerings are rising.
“I’ve covered Nvidia for a long time. We’ve seen air pockets. The chance of an air pocket at some point is probably 100%. But I don’t think it’s now,” said Rasgon.
Overall, according to MarketWatch, 88% of analysts have buy ratings on shares with an average price target of $989.
The Outlook for AI Chip Names
Boding well for AI chip names, Taiwan Semiconductor (NYSE:TSM) also reported very strong first-quarter results earlier this month and provided impressive full-year revenue guidance. Specifically, sales gained 16.5% year-over-year (YOY) while net income increased 9% YOY.
Taiwan Semiconductor expects 2024 to be a “healthy” growth year, per CNBC. According to the company, its strong results and guidance were enabled by “insatiable AI-related demand for energy efficient computing power.”
On the date of publication, Larry Ramer did not hold (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
