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Nvidia Continues to Impress Analysts with Sturdy AI Demand

Almost three months after Nvidia’s spectacular earnings report and optimistic future forecast as a result of rising demand for synthetic intelligence (AI), analysts proceed to be bullish on the chipmaker. Nvidia, recognized for its graphics processing items (GPUs) utilized in AI purposes, has seen its inventory soar 203% this 12 months. The corporate is scheduled to launch its newest outcomes on August 23.

Barclays analyst Blayne Curtis referred to Nvidia because the “better of the AI names” and one of many financial institution’s most popular investments within the AI sector. He justified the rise within the firm’s shares, noting that extra firms are allocating budgets for AI and that Nvidia faces minimal competitors within the discipline.

Piper Sandler’s Harsh Kumar additionally expects Nvidia to surpass estimates for the July quarter and supply robust steering for the October quarter, fueled by development in its datacenter enterprise. Kumar raised his worth goal for Nvidia shares to $500, predicting a 14% upside from yesterday’s closing worth.

Raymond James analyst Srini Pajjuri acknowledged that tight provide points might prohibit near-term development for Nvidia, however emphasised the corporate’s dominant place in AI and machine studying. He raised Raymond James’ worth goal to $500 and boosted income and EPS estimates.

Whereas analysts like Deutsche Financial institution’s Ross Seymore anticipate one other spectacular report from Nvidia, they continue to be cautious as a result of unpredictability of the corporate’s future development. Seymore cited potential dangers from cyclicality however acknowledged the corporate’s efforts to satisfy demand.

General, nearly all of analysts preserve their optimism for Nvidia, anticipating one other robust quarter and additional development pushed by AI demand.

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