Shares of Nvidia Soar to Record High as Tech Earnings Highlight AI Optimism
Shares of Nvidia reached a new all-time high on Friday, hitting an intraday record of $666 per share. This surge comes as the tech industry’s earnings reports emphasize the growing bullishness surrounding artificial intelligence (AI). Bank of America has raised Nvidia’s price target to $800 from $700, anticipating a 23% increase from its current levels.
Analysts predict that Nvidia will exceed revenue expectations in its upcoming earnings report for the last three months of 2023, scheduled for February 21. Bank of America attributes Nvidia’s potential success to its dominant position in the market for GPU chips, which power the majority of AI technologies. The company is projected to maintain a 90% share of the AI training market and over 50% in the AI inference market.
The recent surge in Nvidia’s share price follows strong earnings reports from major tech giants, many of whom have significant plans to integrate AI into their businesses. Meta CEO Mark Zuckerberg assured investors of aggressive investments in the AI space, while executives from Amazon dedicated considerable time during the earnings call to discuss their new smart assistant, Rufus.
Microsoft also reported robust earnings, with its AI Copilot assistant gaining particular attention from investors. Analysts from Wedbush Securities believe Microsoft is on the cusp of a multi-year, trillion-dollar AI opportunity.
Although Nvidia’s stock began to pare some gains towards the market’s closing bell on Friday, it still saw a significant increase, trading at $661.10 per share at 3:10 p.m. ET — a rise of 4.9%.
As the tech industry continues to showcase its commitment to AI, Nvidia’s position as a prominent player in the market has sparked investors’ interest and propelled its stock to new heights. With several tech giants doubling down on their AI investments, experts remain optimistic about the potential growth and profitability of this nascent technology.
