Key Takeaways
Nvidia shares climbed Tuesday after KeyBanc analysts hiked their value goal for the inventory, citing better-than-expected demand for Nvidia’s Blackwell platform.KeyBanc lifted its value goal for Nvidia to $180 from $130, representing greater than 40% upside from the inventory’s closing value Monday.The bullish feedback from KeyBanc got here a day after UBS and Wolfe Analysis analysts additionally raised their value targets for Nvidia on robust demand for the chipmaker’s synthetic intelligence tech.
Nvidia (NVDA) shares climbed in intraday buying and selling Tuesday after KeyBanc analysts hiked their value goal for the inventory, citing better-than-expected demand for Nvidia’s upcoming Blackwell platform to energy synthetic intelligence (AI).
Nvidia shares have been up practically 3% at $131.56 round midday ET Tuesday, extending features earlier within the week after bullish calls from UBS and Wolfe Analysis on the AI chipmaker’s potential.
KeyBanc analysts lifted their value goal for the chipmaker to $180 from $130, which represents a greater than 40% upside from the inventory’s closing value Monday. The analysts maintained their “obese” score for the inventory.
Blackwell Demand Higher Than Anticipated
KeyBanc analyst John Vinh reported that demand for Nvidia’s upcoming Blackwell platform is even higher than beforehand anticipated.
“The curiosity and demand in GB200 is larger than we initially had sized,” the analyst wrote, including that the Blackwell demand “ought to assist information heart revenues of over $200B in 2025.”
UBS analysts, alongside Wolfe Analysis, additionally reported strong demand for Blackwell supported by huge tech’s AI spending.
No Indicators of Flagging Demand for Older Merchandise
Amid some considerations about whether or not Nvidia might face an “air pocket” in gross sales if some clients decide to attend for Nvidia’s newest tech as an alternative of shopping for Hopper, Blackwell’s predecessor, KeyBanc analysts stated demand for Hopper stays robust.
“Regardless of the upcoming launch of Blackwell in 2H24, we aren’t seeing any indicators of a requirement pause as demand for H100 stays strong, as we proceed to see rush orders,” the analysts stated, in what may very well be a promising signal for Nvidia’s older merchandise because the chipmaker rolls out new know-how.
Nvidia plans for its next-generation AI platform Rubin to comply with Blackwell, as a part of its one-year product cycle to maintain up with the evolution of AI know-how.