Increasing bets that Nvidia’s revenue target will once again exceed Wall Street estimates, lifted the stock by about 19 percent, from its two-month low it hit last week.
Today, shares rose 0.4 percent at the beginning of trading at $ 471.55, after hitting a record high of $ 481.87 minutes after the market opened, and exceeding its previous peak of $ 480.88 on July 14.
Analysts expect Nvidia, which dominates the market for chips used to power generated artificial intelligence such as ChatGPT and many such services, will post 110 percent growth in third-quarter revenue to $12.50 billion when it reports results on Wednesday.
“Expected results may be the most important thing this earnings season,” said Dennis Dick, market analyst at Triple D Trading.
The company had predicted in May that second-quarter revenue would be more than 50 percent higher than market expectations, and that pushed its market value to more than $1 trillion, making its shares the best-performing stock on the S&P 500 index.
Expectations of Nvidia’s results in the second quarter sparked a rise in artificial intelligence stocks as well as major technology companies, making them one of the main drivers of the rise in US stocks this year.
And at least 19 brokerage firms this month raised their target price on Nvidia, pushing the average bid to $500, which is a 6.5 percent increase from the stock’s last closing price.
It is noteworthy that the value of “Nvidia” shares has more than tripled so far in 2023.
The company’s shares saw an increase in popularity among hedge funds in the second quarter, a report from Goldman Sachs showed.
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