(CercleFinance.com) – HSBC announced on Monday that it had raised its price target on Nvidia from $800 to $835, while renewing its buy recommendation on the stock.
Two days before the publication of the chip manufacturer’s quarterly results, the broker says he is optimistic about the domination strategy deployed by the group in AI, which from his point of view should allow it to stay one step ahead of its competitors.
The broker nevertheless believes that the company’s ability to exceed market forecasts is likely to diminish from now on due to increasingly ambitious consensus estimates.
If he says he expects figures in line, or even slightly higher than forecasts for the past quarter, the objectives for the current quarter should not excite investors, warns HSBC.
While the Nvidia share price has already climbed 46% since the start of the year, compared to a gain of 8% for the Nasdaq index, the professional is nevertheless positive regarding an upcoming revaluation of the title, more linked to the company’s ability to create new markets.
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