This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEE141FU_M.jpg
Needham & Company analysts raised the firm’s price target on NVIDIA (NASDAQ:NVDA) to $300 from $270, maintaining a Buy rating on the stock.
The price target increase follows NVDA CEO Jensen Huang’s discussion with OpenAI co-founder Ilya Sutskever to talk about AI.
“Mr. Sustskever shared a fascinating timeline of ChatGPT and his time working on neural networks,” said analysts. “We came away with a clearer understanding of why larger models are needed for accurate prediction.”
They added that they are increasing the price target based on multiples towards the higher end of historical ranges.
The Needham & Company analysts believe AI will continue to push the needs of the semiconductor industry in order to achieve the necessary levels of capability and reliability.
“We expect NVDA’s valuation to increase based on near-term data center strength, receding gaming headwinds, and greater traction in inference and software markets,” wrote analysts.
“While NVDA’s stock has reacted very positively YTD (+81%), we feel the magnitude of what both Jensen and Ilya discussed today, specifically adding video and audio to multi-model systems, has a much broader reach,” they concluded.
