Fed by his dominance in artificial intelligence (AI) chips, Nvidia was the first company to exceed $ 4 trillion about market capitalization last month. The market value is now only around $ 1 trillion under the Nikkei 225 index of Japan, the world’s second largest stock market after the United States. The company also accounts for 4.94% of the MSCI All Country World Index, almost corresponding to the share of 4.97% of Japan.
Analysts are still bullisher
Cantor Fitzgerald has lifted his NVIDIA target white to $ 240 from $ 200 on August 18 and wrote that “China has already been risen in street models, and the goal here is to have China build on the NVDA platform here. Every progress must be received well,” said Bloomberg. Other brokers, including Wedbush, Keybanc, UBS, Morgan Stanley and Susquehanna, have also raised their goals this month. Almost 90% of the analysts who cover Nvidia are a buy equivalent, turns out to be Bloomberg data.
UBS repeated his buy -rating last week and raised its price target to $ 205 from $ 175, and noted that it will be Bullisher before winning, CNBC reported.
The AI Bellwether
NVIDIA shares have risen by more than 30% this year, so that their profit is extended to more than 1,400% since October 2022. The weight in the S&P 500 index is now almost 8%, so that the status as a Belwweter for both the technology sector and the wider American market is confirmed. About 40% of the turnover comes from Microsoft, Alphabet, Meta and Amazon, all of whom are the largest voters in the index.
The shares rose by 1.7% on 22 August, with a three -day losing series getting stuck and moved within 3% of a record high set earlier this month. But with the expectations that are high, analysts warn that even a modest miss on the results could cause a sale that echoes over the markets.
Income in Focus
NVIDIA reports tax results of the second quarter on 27 August and concludes a profit season in the US that generally surpassed the predictions. Wall Street expects an adjusted income of $ 1.01 per share, an increase of 48% compared to a year earlier, with a turnover of more than $ 46 billion, a 54% jump, according to Bloomberg and LSEG data.
The report comes at a delicate moment for markets. The signal from the Federal Reserve chairman Jerome Powell that the cutbacks of the interest rate reduction will come after a piece of weakness last week, but investors now want a confirmation that AI expenditure can support the rally. Any comment from Nvidia on request or capital expenditure, in particular with regard to China, will be left closely.
As the world’s most valuable chip maker, Nvidia’s prospects could decide whether the newest market dump will continue to exist, or whether towering expectations finally catch up with Wall Street’s favorite stock.
Read also | Jensen Huang Richer with another $ 28 billion this year in the midst of Nvidia’s $ 4 trillion performance
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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