This is Why Nvidia Could Race to Higher Highs

Nvidia (NVDA) has gone ballistic.

When we first mentioned NVDA, it traded at just $172 a share. Now, it’s up to $475.34 – and still running. Today alone it’s up $10.90 on the news Bank of America just reiterated a buy rating on the tech stock with a new price target of $550 from $500.

“Cloud/enterprise spending on AI [is] driving demand for [Nvidia chip] accelerators,” he wrote. “Within accelerators, NVDA can hold its dominance,” they said, as quoted by Barron’s, adding the company has about 75% of the market for advanced AI semiconductors.

Helping, the company has very high exposure to generative AI.

Generative Ai could add between $2.6 trillion and $4.4 trillion a year to the global economy. That’s according to a new McKinsey report, which also said it could have a “significant impact across all industry sectors. Banking, high tech, and life sciences are among the industries that could see the biggest impact as a percentage of their revenues from generative AI.”

Even better, according to Mizuho Securities analyst James Lee, “Gen-AI is driving the next super cycle of cloud adoption that accelerates mass market migration over the next few years since the new technology can only be efficiently deployed in the cloud.” In short, we’re looking at a massive game-changer for just about every industry in the world.

Seeing that NVDA easily blew past our initial price target of $300 with no problem, we’re raising our 2023 target price to $600.