Nvidia stock was rising Tuesday as chip stocks looked set for another positive day. Bullish analysts and further signs of huge spending on infrastructure to support artificial-intelligence technology are likely helping shares move higher.
Nvidia shares were up 3.7% at $132.89 in morning trading. The stock rose 1.9% on Monday.
After a brief fall into correction territory late last month, Nvidia looks to be heading up again and threatening its record closing high of $135.58, once adjusted for its recent 10-for-1 stock split.
Nvidia got another boost from Wall Street as KeyBanc analyst John Vinh raised his target price on the stock to $180 from $130, while keeping an Overweight rating on the stock. The new target is 33% higher than the stock’s recent price. Vinh was the seventh analyst to raise Nvidia’s target in July, according to FactSet, though the average price target remains at $130.92, below where Nvidia is currently trading. Expect more target increases in the future.
Related stocks are also on a roll as chip manufacturer Taiwan Semiconductor Manufacturing hit arecord highon Monday.
Among other chip makers, Advanced Micro Devices was down 0.8% and Intel was rising 0.4% in morning trading. Server makerSuper Micro Computer gained 3.0%.
More signs of the huge amounts of money flowing into AI infrastructure came this week when privately held data center operator CyrusOne said Monday that it had secured a $7.9 billion line of credit to fund existing and future development projects in the U.S.
CyrusOne’s data centers house its customers’ equipment, so it isn’t a direct customer of Nvidia. However, it’s another sign of the expectations that AI will continue to grow, boosting demand for chips and data center sites. In North America, data center inventory grew by 24% during the first three months of 2024 from the same period a year earlier, according to commercial real estate company CBRE.
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