As one of the biggest beneficiaries of the rise of artificial intelligence (AI), Nvidia's stock price continues to soar, rising nearly 50% so far this year. This has prompted Wall Street to follow up and be optimistic about Nvidia's performance, with at least five institutions raising the company's target stock price this month.
As of the close of the US stock market on Monday, Nvidia's stock price has once again hit a historic high, closing at around $722 per share. It has risen by 46% this year and its market value has increased by approximately $560 billion.
On Monday afternoon, Nvidia's market value briefly surpassed Google and Amazon, becoming the fourth highest company in the world by market value, second only to Microsoft, Apple, and Saudi Aramco. However, at the close of Monday, Nvidia gave up most of its gains and narrowly lagged behind Google and Amazon.
Nvidia is in a monopolistic position in the field of AI chips, and the market is optimistic that Nvidia chips will remain in short supply for a long time. UBS and Mizuho have recently followed in the footsteps of their peers and raised Nvidia's target stock price. Prior to this, Morgan Stanley, Goldman Sachs, and Bank of America all expressed optimism about the future trend of Nvidia's stock price.
This week, UBS raised Nvidia's target stock price from $580 to $850 and raised its earnings per share forecast. At the same time, Mizuho raised its target stock price from $625 to $825.
Mizuho analyst Vijay Rakesh wrote in a client report that Nvidia is the best AI stock, and market demand for the company's H100 will continue to exceed supply. H100 is considered the most needed GPU for training large language models.
As one of the most favored stocks in the US stock market, Nvidia has performed the best in both the S&P 500 index and the NASDAQ 100 index this year.
Although Wall Street is already very bullish on Nvidia, they still struggle to keep up with the rising pace of the stock. The 12-month average target stock price given by Wall Street is about $690, which is about 4.5% lower than Nvidia's closing price on Monday.