Nvidia Corp. shares experienced an upward movement on Tuesday as a pair of analysts upgraded their bullish stance on the hot chip stock.
UBS analyst Timothy Arcuri stated that although expectations for Nvidia’s earnings in the next calendar year have substantially increased, he believes that investors should “stay the course” and take advantage of the recent pullback in shares that occurred last week. Arcuri increased his price target on Nvidia shares from $475 to $540 and set a buy rating on the stock.
Similarly, Morgan Stanley analyst Joseph Moore also highlighted a buying opportunity in Nvidia’s stock in a recent report.
Wells Fargo’s Aaron Rakers raised his price target on Nvidia shares from $450 to $500. He expressed concerns about the high expectations from the buy-side leading up to Nvidia’s earnings report on August 23 but acknowledged the company’s preeminent positioning as the primary beneficiary of an AI-driven architectural data center transformation. Rakers emphasized that Nvidia still has underappreciated opportunities in platform expansion and monetization.
Nvidia shares were up 0.8% in morning trading on Tuesday after closing 7.1% higher in Monday’s session. The stock is currently down 7.1% from its all-time closing high of $474.94 achieved on July 18.
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