Nvidia Corp. shares were moving higher Tuesday after a pair of analysts boosted their bullish views of the hot chip stock.
Though expectations for Nvidia’s
NVDA,
earnings next calendar year “have risen substantially,” UBS analyst Timothy Arcuri said he thinks investors should “stay the course” and take advantage of a pullback in shares that occurred during most of last week.
“Even for more tactical investors, it still seems early to get off this train because [year-over-year comparisons] won’t get tough until year-end and the stock has rarely peaked prior to Y/Y comps peaking,” Arcuri wrote as he lifted his price target on Nvidia shares to $540 from $475.
He set a buy rating on the stock.
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Arcuri offered a similar sentiment to that of Morgan Stanley analyst Joseph Moore, who called out a buying opportunity in Nvidia’s stock in a Monday report.
Meanwhile, Wells Fargo’s Aaron Rakers upped his price target on Nvidia shares to $500 from $450 Tuesday, even as he said he and his team aren’t “fans” of where buy-side expectations appear to be headed into Nvidia’s Aug. 23 earnings report and the “very high bar” the company faces.
“[W]e think it’s hard to bet against NVDA’s preeminent positioning as the primary beneficiary of an AI-driven architectural data center transformation,” Rakers wrote. On top of that, the company still has “underappreciated” opportunities in platform expansion and monetization, he added.
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Rakers set an overweight rating on Nvidia shares, which were up 0.8% in morning trading Tuesday after closing 7.1% higher in Monday’s session.
The stock is off 7.1% from its all-time closing high of $474.94, which was achieved on July 18.
This story originally appeared on Marketwatch
