Tech juggernaut Nvidia (NASDAQ:NVDA) continued its relentless march higher on Monday afternoon, gaining about 4%. Over the weekend, the company announced its latest next-generation chip, Rubin, which focuses on artificial intelligence (AI) based applications. Subsequently, Bank of America upped its price target of NVDA stock to $1,500.
According to a CNBC report, Nvidia CEO Jensen Huang unveiled Rubin ahead of the Computex tech conference held in Taipei. Notably, this news item follows the announcement of the Blackwell semiconductor, which aroused much speculation.
Significantly, CNBC points out that the disclosure of Rubin “appears to quicken the company’s already-accelerated pace of AI chip advancement.” For context, Nvidia essentially promised to introduce new AI chip models on a “one-year rhythm,” per Huang over the weekend. Previously, the news agency stated that the company had been “operating on a slower two-year update timeline for chips.”
Subsequently, Bank of America analysts boosted their price target of NVDA stock to $1,500 per share. That implies about 37% up from Friday’s closing price of $1,095.45.
BofA Is Not Alone in Raising Price Targets for NVDA Stock
According to TipRanks, the overall average price target for NVDA stock stands at $1,197.64. The consensus remains a strong buy, breaking down as 37 buy ratings and three holds. Presently, no analyst dares issue a sell rating.
Further, with BofA’s lifting of its per-share forecast to $1,500, it stands as the most optimistic projection. The price target beats out three forecasts, each calling for $1,400 by Cantor Fitzgerald, Rosenblatt Securities and Phillip Securities.
Most importantly, BofA isn’t alone in recently raising its view on NVDA stock. Notable examples include Goldman Sachs, which upped its price objective to $1,200 from $1,100 on May 23. KeyCorp also lifted its per-share forecast on NVDA to $1,300 from $1,200 on the same day.
However, not everyone is so eager to jump on the Nvidia bandwagon. In particular, DZ Bank cut its “buy” rating to a “hold” while broadcasting a $1,025 price target. That implies about 10% downside risk, a rare dissenting argument.
On the date of publication, Josh Enomoto 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.
