Nvidia: BofA lifts price target on new AI chip announcement

Shares of Nvidia (NVDA) are soaring on Monday following the company's announcement of new AI chips, sparking optimism among investors and analysts. In a bullish move, Bank of America analysts have raised their price target on the chipmaker to $1,500, up from the previous target of $1,320.

Yahoo Finance's Seana Smith and Madison Mills break down the details, providing insight into the intensifying competition as AMD (AMD) unveiled its own AI chip.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video transcript

We're gonna get to some trending tickers we are watching this morning, we gotta start with the big guy here Invidia.

Those shares are up a little over 3.5% this morning after the company announced new A I chips Bank of America.

Moving on this news raising their price target on the stock to $1500 a share that is up from 1320 this is now the highest call on the street.

Now, Shana, not only news from NVIDIA this morning, A MD also announcing a new chip at this tech conference this week and A MD is kind of the closest thing NVIDIA has to a competitor, but I just pulled this stat that shows how far ahead NVIDIA is from A MD.

They grew sales by $100 billion in A I chips in the past year.

A MD is expected to do 4 billion.

So you really can't compare.

That's 1 25th in terms of the comparison.

Exactly.

You talk about just the sheer dominance that NVIDIA has had over the market up until this point.

And you talk about the new chips, what they have in the pipeline.

Clearly a lot of excitement surrounding what we heard from Jensen Wong over the weekend.

And that's why you're seeing NVIDIA once again assad that had already been up 100 and 20 plus percent heading into the weekend, up another 3.5 to 4% here today.

So you talk about that runway for growth and I think a lot of that optimism was reflected in this new uh price target that we're getting out here from Bank of America uh earlier this morning, 1500 that's up from 1320.

And why will they bullish here just in terms of where we are in the sector?

Uh They're still saying that we're early in the cycle here for the sector A it wins and solid free cash flow, they see near term, it might be a bit stretch, but the semiconductor cycle has legs for another 12 to 18 months.

So again, when you take into a the 1500 call, that's about 35 37% upside from where we are today.

So still many analysts on the street remaining extremely bullish on this day, you can see investors clearly getting excited by some of the announcements that were made over the weekend.

And still, it just really shows that we are maybe in fact in the very, very early innings of the A I adoption cycle and the A I investment cycle when even comes to some of those caps as well.