The AI boom is far from over.
Especially for Nvidia (NVDA).
For one, Goldman Sachs just raised its price target on NVDA to $495 from $440, with a buy rating. This comes just weeks after Nvidia predicted that it will see elevated demand for its data center chips, which play a key role in powering the generative AI technology.
With that prediction, Goldman Sachs said this “step-function increase” in expected demand for data center chips suggests the company is on the verge of a new phase of growth driven by the “emergence and proliferation of generative AI,” as quoted by Investing.com.
Morgan Stanley is just as bullish on the NVDA stock. In fact, analysts reiterated an overweight rating on the stock with a price target of $500.
“Nvidia remains [a] Top Pick, reflecting significant potential for near term upside — as the only company likely beating and raising due to AI in CY23,” they said, as quoted by Barron’s, adding that, “Since Nvidia posted earnings in May “our industry contacts [are] reporting daily new orders from customers that were not contemplated as major customers until now.”
NVDA last traded down $4.85 on the day to $420.18.
Don’t let the weakness chase you from the stock, though. With a good deal of AI potential, pullbacks may be strong opportunities.
Better, the AI boom shows no signs of cooling.
In fact, the AI story, which could be worth about $1.8 trillion by 2030, is just getting started.
Analysts at Bank of America say AI is on the brink of an “iPhone moment” and could boost the global economy by $15.7 trillion in seven years. “We are at a defining moment – like the internet in the ’90s – where Artificial Intelligence (AI) is moving towards mass adoption, with large language models like ChatGPT finally enabling us to fully capitalize on the data revolution,” said the firm, as quoted by Business Insider.
Plus, consider this.
Generative artificial intelligence (AI) could have a substantial impact on just about everything. According to Goldman Sachs, Breakthroughs in generative artificial intelligence have the potential to bring about sweeping changes to the global economy. Two, according to Precedence Research, the generative AI market could be worth $118.06 billion by 2032 from $10.79 billion.