Nvidia’s stock fell on Monday despite receiving positive feedback from Wall Street analysts. The chipmaker, which briefly held the title of the most valuable company in the world last week, has now been surpassed by Microsoft and Apple in terms of market value. Despite this, Nvidia’s shares have seen a significant increase of 156% year to date, outperforming the S&P 500 and Nasdaq Composite indexes.
The company’s rapid rise has led to concerns about its valuation being stretched, although strong revenue and profit growth fueled by demand for its chips for artificial intelligence technology have also been noted. Analysts, however, believe that Nvidia’s lead in both hardware and software ecosystems will continue to grow with new innovations like its NVL72 liquid-cooled rack systems, which contain its graphics processing units.
Jefferies analyst Blayne Curtis has raised his price target on Nvidia shares to $150 and maintains a Buy rating based on these positive forecasts. Additionally, Nvidia has signed a deal to deploy its technology in data centers owned by the Qatari telecoms group, Ooredoo, in five Middle Eastern countries. This marks the company’s first major launch in the region where there are restrictions on advanced chip exports.
In comparison, other chip manufacturers like Advanced Micro Devices and Intel saw declines in their stock prices. Analysts believe that while profit-taking may be reasonable given Nvidia’s rapid rise, a further decline in its stock could lead to a sell-off in other big tech names. Despite these concerns, Wall Street analysts remain optimistic about Nvidia’s future growth prospects.
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