NVIDIA, which announced its earnings on the 21st, has seen a series of target price upgrades following its better-than-expected performance.
As of last weekend (23rd), NVIDIA’s stock price is $788. The company closed the day at $788.17, showing anincrease of 0.36% from the previous trading day.
According to a report by Yahoo Finance on the 25th (local time), target prices over $1,000 are emerging as the stock price continues to rally.
This is not only due to the performance that exceeded market expectations the previous quarter, but also due to the positive outlook for this quarter. NVIDIA has forecasted this quarter’s sales to be $24 billion, more than $2 billion higher than the average market estimate.
As a result, target goals are following one after another.
For starters, KeyBanc analyst John Vinh raised NVIDIA’s target price from the previous $740 to $1,100. Other brokerage firms, including Bernstein, have also raised their target prices to over $1,000.
Currently, the highest target price is $1,200, proposed by Loop Capital.
Investment firms that have raised their target prices agree that NVIDIA’s current price-to-earnings ratio (PER) of 65 is quite reasonable for a rapidly growing stock.
Not only that, but there has also been the emergence of a call (buy) option of $1,300. This is a bet that NVIDIA’s stock price will reach $1,300.
If NVIDIA’s stock price rises to $1,300, its market capitalization will reach $3.2 trillion. This would push NVIDIA, currently third in market cap, to the top spot, surpassing Microsoft (MS).
As of the 23rd, the current market cap ranking is as follows: MS ($3.49 trillion), Apple ($2.818 trillion), and NVIDIA ($1.97 trillion), respectively.
sinopark@news1.kr
