In a surge that defied the broader market turbulence, shares of Nvidia (NVDA) climbed more than 4.5% on Thursday, as tech stocks led a market rebound.
This rally comes on the heels of a significant decline of over 26% from the stock’s all-time high of $140, making Wall Street increasingly bullish on the AI chip heavyweight.
The positive sentiment around Nvidia was reinforced on Wednesday when Piper Sandler analysts pointed to a “tremendous opportunity” for investors to buy the AI chip giant and other chip names, following the recent sector-wide sell-off.
While a recent report suggested a potential delay in Nvidia’s upcoming Blackwell chip, several Wall Street analysts have remained unfazed, dismissing the notion that this setback will have a significant long-term impact on the company’s performance.
In fact, the consensus appears to be that the company’s dominance in the AI data center chip sector mitigates any short-term risks associated with a pause in shipments as customers await the availability of the new chips.
“We still sense an urgent demand across the board, and that mitigates the risk in a pause in shipments as customers wait for the next generation of chips to be available in volumes,” said Antoine Chkaiban, a technology infrastructure analyst at New Street Research, in an interview with Yahoo Finance on Thursday.
Chkaiban’s confidence in Nvidia’s prospects is reflected in his recent decision to upgrade the stock to a ‘Buy’ rating, with a price target of $120.
This bullish outlook underscores the belief that Nvidia’s leadership in the AI chip market will continue to drive growth and investor interest, even in the face of potential product cycle delays.
As the world becomes increasingly reliant on artificial intelligence and machine learning technologies, Nvidia’s position as a premier supplier of the specialized chips powering these applications is seen as a significant competitive advantage.
The company’s ability to consistently innovate and maintain its technological edge has made it a favorite among investors seeking exposure to the burgeoning AI market.
With Wall Street’s renewed confidence in Nvidia’s long-term prospects, the recent stock price dip appears to have presented a valuable opportunity for investors to gain exposure to a industry-leading AI chip manufacturer poised for continued growth and market dominance.
Price Action:
At last check, NVDA was trading above $103, with a 4.65% increase
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