Nvidia Corp.’s (NVDA) gravity-defying rally marches on, with record highs on consecutive days. In premarket on Wednesday, the stock surged by 1.13% to $537.38, according to Benzinga Pro data.
Analysts maintain that despite the significant runup since early 2023, the stock remains a buy. The consensus price target for the stock, according to TipRanks, stands at $662.39, signifying a potential 25% upside in the next year.
Renowned for his bullish Tesla thesis, Gary Black outlined the reasons behind Nvidia’s remarkable performance, including its leading products, stellar execution, strong management, a low-drama environment, and minimal headline risk.
See Also: How to Buy Nvidia (NVDA) Stock
Nvidia is now the sixth most valued global company, and its exposure to artificial intelligence technology has positioned it favorably for sustained outperformance. Nvidia and analysts are currently anticipating year-over-year revenue growth of approximately 230% for the December quarter.
While releasing its third-quarter results, the company expressed caution about the impact of the U.S.-China chip ban. A recent FT report suggested that Chinese companies are endeavoring to repurpose chips from standard PC gaming products to develop artificial intelligence tools.
Reports also indicate that Nvidia is collaborating with prominent Indian business groups to establish data center facilities in India. This initiative was announced by Nvidia’s Senior VP of Enterprise Business, Shankar Trivedi, at the 10th edition of the Vibrant Gujarat Global Summit.
Nvidia’s AI accelerator chipsets have become essential for AI applications and software developed worldwide as the generative AI revolution gains momentum.
Read Next: Jim Cramer Says Nvidia ‘Still Undervalued’ Despite 4% Jump To Record High