Nvidia Now Worth More than Berkshire, But…

Mar 23, 2023

Nvidia (NVDA) is still one of our top picks for 2023.

On February 23, we mentioned it as a buy opportunity, as it traded at $235. Today, the stock is up to $273.87, and could test higher highs.

All thanks to the booming AI story, earnings, and an upgrade from Goldman Sachs. With earnings, the company posted EPS of 88 cents, as compared to expectations for 81 cents. Revenue came in at $6.05 billion, which was better than estimates for $6.02 billion.

Even better, it sees revenue with a midpoint of $6.5 billion in the first quarter, which is also above expectations. Better, Oppenheimer analysts raised their price target on NVDA to $275 from $250. Even Piper Sandler just raised their price target to $275 from $225.

Now, there’s news NVDA may have just passed Berkshire Hathaway as the market’s fifth biggest stock. Actually, NVDA currently has a market cap of $682.68 billion, as compared to Berkshire Hathaway’s $658.78 billion market cap. Helping even more, analysts at Needham just raised their price target to $300 from $270. BMO also just raised its target to $305 from $255.

And, according to Evercore, as noted by TheFly.com:

Following Nvidia CEO Jensen Huang’s GTC keynote, Evercore ISI analyst C.J. Muse said the firm’s primary takeaway from the event is that Nvidia is seeing accelerating demand for its solutions, driven by the rapid expansion of generative AI and increasing criticality of power efficiency in the data center. The event thus far has gone “largely as expected” and primarily served to increase confidence in Nvidia’s positioning as “the arm’s dealer and enabler of AI adoption across every industry,” said the firm, adding that generative AI is marking an inflection point for AI and Nvidia “remains king” in the AI space. The firm reiterates its Outperform rating, $300 price target and “Top Pick” designation on Nvidia.

While we still believe NVDA will eventually hit our $300 price target, the stock is also overdue for a healthy correction. Over the last few days, NVDA has done nothing but run up in a straight line. At some point, we expect to see some profit taking before NVDA sees another leg up.

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