Nvidia CEO Jensen Huang is set to report the company’s second-quarter results as demand for processors powering generative AI continues to rise. Bank of America remains optimistic about Nvidia’s future, reiterating its $1,500 price target and predicting another 24% upside for the stock. The bank believes Nvidia will continue to dominate the computer market in the next upgrade cycle, praising the company’s position in the IT sector and its lead in performance and development support. Analysts anticipate Nvidia’s success in the computer market over the next decade as the IT sector undergoes infrastructure upgrade cycles amounting to between $250 billion and $500 billion annually, with Nvidia leading the way.
Nvidia’s stock has been on a stellar rally over the past 18 months, driven by the AI arms race sparked by OpenAI’s ChatGPT launch. Nvidia’s chips have been essential in powering AI models, leading the company to hit record stock prices recently and surpass Apple in total market capitalization to become the second most valuable company in the world. Nvidia’s recent 10-for-1 stock split may attract more attention from retail investors and potentially drive further gains.
Despite the positive outlook, some forecasters caution about Nvidia’s long-term growth potential. Analysts warn of potential challenges such as waning demand and increased competition in the GPU market that could lead to a sharp decline in the stock. Overall, Bank of America and other analysts remain bullish on Nvidia’s prospects, highlighting the company’s strength in the IT sector and its position to lead the computer market in the years to come.
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https://finance.yahoo.com/news/nvidia-stock-another-24-climb-233537440.html
