In the midst of the ongoing AI boom, experts continue to favor NVIDIA, advising investors to purchase the stock ahead of the company’s upcoming earnings report scheduled for mid-week. But how do other major AI stocks like Baidu, AMD, and others compare? Here’s what analysts expect.
Analysts Recommend Buying NVIDIA Stock
With the earnings report set to be released this Wednesday, analysts at Evercore ISI recently commented on the California-based AI beneficiary. They advise investors not to be deterred by potential delays in the release of the Blackwell system, calling such concerns “exaggerated,” according to Investing.com. Instead, they suggest that interested parties should act before the earnings report and purchase NVIDIA stock. While negative announcements could lead to short-term price drops of five to ten percent, based on previous delays and product interruptions, the Evercore analysts note that NVIDIA has consistently demonstrated strong resilience by quickly developing alternative solutions. “Moreover, we believe that demand, even if a delay occurs, is so strong, particularly among CSPs (Cloud Service Providers) and Tier 2 and 3 companies, that Hopper solutions from the current generation would still be purchased even as Blackwell is rolled out,” the analysts added.
In general, demand for the US chip giant’s systems remains robust, leading the analysts to express strong confidence that NVIDIA will continue to grow in the future. The experts at Evercore still consider NVIDIA stock as a “top pick for the tectonic shift in computing technology,” according to Investing.com. In line with this optimistic outlook, they also raised their price target from $145 to $150—representing an upside potential of about 16% compared to the last closing price (as of August 23, 2024). On NASDAQ, NVIDIA shares currently trade at $129.37, having surged approximately 161% since the start of the year. Out of 35 analyst opinions tracked by TipRanks, 32 currently recommend buying the stock, while three suggest holding it. The average price target stands at $149.89.
NVIDIA Stocks Climb Towards Record Highs Ahead of Quarterly Report
With renewed optimism, investors await this week’s quarterly report from the US chip manufacturer NVIDIA. With a temporary price gain of 0.62% to $130.17, NVIDIA shares were among the most actively traded stocks on the US stock exchange on Monday.
