While Nvidia (NVDA, Financial) is a symbol of the market’s success, currently valued at $3.4 trillion, the adage that too much success can obscure judgment has been felt among analysts covering the chipmaker. Nvidia has experienced record gains this year, but the technical analysis indicates much more upside potential in the next twelve months, according to Chris Versace, an analyst from the Street Pro portfolio, who raised his price target for the stock from $155 to $175 last Friday.
So far this year, Nvidia’s share has gone up by almost 179%, including a 13.6% rise in October. This makes it one of the market leaders by market cap, placing it just shy of Apple and ahead of Microsoft. The change in the price target is made at a time when Nvidia remains to benefit from increased adoption of artificial intelligence, an area in which the firm’s semiconductors and software are deemed critical.
This is Versace’s new target, indicating a confidence boost resulting from Nvidia’s strong quarters and its position in a sector inclining more towards AI-based technology. Having been at $138, almost at their optimum, the company’s stockholders are in a position to experience a year of growth that was probably way ahead of most of its competitors in the industry.
With Nvidia on course for another record-breaking, financially lucrative year, people are keeping a close eye on the company’s future actions within the artificial intelligence sector to track the path that will see its stock soar further and potentially post record highs in the coming months.
This article first appeared on GuruFocus.
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