Computer Software and Hardware manufacturer, Nvidia is on course to record its highest daily closing price ever following a 5% rise in its stock price on Monday after BofA Securities reaffirmed a “Buy” rating and raised its price target to $190.
Reasons For Increase
Nvidia reached a level that would be a new closing high amid further signs of strong demand for artificial intelligence chips as well as the fact CEO Jensen Huang is set to deliver a keynote speech at the CES tech show in Las Vegas on Monday.
Nvidia’s stock is currently on track to finish at $151.65 at the end of the day’s trading after its shares went up 3.6% at $149.70 in early trading. Nvidia is expected to announce an AI-focused client (PC) central-processing unit soon which could further swell its stock price.
The improved stock price is expected as Nvidia typically makes important product announcements at the CES trade show — such as last year’s debut of new desktop graphics chips for gaming and AI while Huang’s speech is also expected to give investors a preview of what is ahead for the artificial intelligence giant and the burgeoning artificial intelligence market.
Huang’s address comes as investors eagerly await the rollout of Nvidia’s latest Blackwell AI chips, which analysts have said will drive a massive new cycle of demand for the company’s products, despite fears of a slowdown in AI spending.
Nvidia stock’s jump on Monday extends its gains from last week when the chipmaker led the “Magnificent Seven” tech stocks to rebound from a disappointing end to 2024.
