Artificial intelligence (AI) has been a significant driver in the stock market this year, with companies like Nvidia (NVDA) experiencing significant gains. Despite a recent pullback, NVDA stock remains attractive to investors, as evidenced by Keybanc’s continued “overweight” rating.
Keybanc analysts believe that Nvidia is well-positioned to benefit from the rapid growth of AI, particularly in the generative AI space. Melius Research also expressed optimism, predicting that Nvidia’s upcoming Blackwell AI chip could significantly boost growth through 2025 and setting a $1,000 price target with a “buy” rating.
Bernstein analyst Stacy Rasgon added to the bullish sentiment, stating that demand for Nvidia’s chips remains strong, with increasing sales of recently released products. Rasgon highlighted the long-term growth potential of Nvidia, emphasizing the inevitability of temporary setbacks but dismissing the likelihood of a major downturn.
The overall analyst consensus on NVDA is positive, with 88% of analysts recommending a buy and an average price target of $989, according to MarketWatch.
Taiwan Semiconductor (TSM), another major player in the AI chip market, reported strong first-quarter results and provided positive revenue guidance for the full year. The company’s growth is driven by the increasing demand for energy-efficient computing power in AI applications.
Overall, the outlook for AI chip companies remains promising, with Nvidia and Taiwan Semiconductor expected to continue benefiting from the growing adoption of AI technology.
