Why Nvidia Stock Popped Today
What happened
Shares of semiconductor star Nvidia (NASDAQ: NVDA) jumped 2% as of 10 a.m. ET on Thursday, after analysts at Tigress Financial Partners boosted their price target on the stock.
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So what
In a note out this morning on StreetInsider.com, Tigress said it is raising its price target on Nvidia stock to $400.
From its roots as a provider of graphics chips for gaming, Tigress said, the company continues its transformation into the world's leading provider of artificial-intelligence (AI) hardware. The analysts noted that third-quarter revenue increased 50% year over year to $7.1 billion, with gaming revenue up 42% and data center revenue up 55%.
Now what
And Tigress sees more good news where that came from: "Demand for Nvidia AI also continues to accelerate, driven by cloud-scale and hyper-scale adoption by over 25,000 companies."
As Nvidia works to dominate both AI and the metaverse that it will enable, Tigress sees the stock's rapid rise not slowing down. Indeed, even after watching shares more than double over the past year, its new $400 price target predicts that new investors can expect a 25% profit from this growth stock over the next 12 months.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool has a disclosure policy.
