Nvidia shares get price-target hike ahead of GTC 2024

A Wall Street firm raised its price targets on Wednesday Nvidia (NVDA) share and Super Micro Computer (SMCI) ahead of Nvidia's GTC conference for AI developers next week.


BofA Securities analyst Vivek Arya said news of Nvidia's GTC event, dubbed “AI Woodstock,” could be a catalyst for Nvidia stock. He reiterated his buy rating on the graphics-chip maker and raised his price target to 1,100 from 925.

In morning trading on the stock market today, Nvidia stock fell more than 2% to 895. However, year to date, Nvidia is still up 80%.

Nvidia CEO Jensen Huang will kick off the four-day GTC conference and expo with a keynote presentation later Monday. GTC takes place in San Jose, California.

Arya said in a client note that Nvidia expects to showcase its extensive product pipeline across AI accelerators, Ethernet switches, data center hardware, PC gear, software and services.

Nvidia is likely to talk about a $1 trillion to $2 trillion opportunity to rebuild global computing infrastructure with accelerators. Arya said this could lead to an annual market opportunity of $250 billion to $500 billion over the next three to five years.

Super Micro is 'good' on AI servers

Elsewhere at BofA Securities, analyst Rublu Bhattacharya raised his price target on data center computer maker Super Microcomputer to 1,280 from 1,040. He kept his buy rating on the super micro stock.

In morning trade, Super Micro shares advanced 0.3% to 1,166.66.

SuperMicro is “well positioned to benefit from the growing AI server market,” Bhattacharya said in a client note. “The company has the ability to support strong demand and revenue growth.”

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He expects industry sales of artificial intelligence servers to grow from $39 billion in 2023 to $200 billion in 2027.

Nvidia stock is on 5 IBD lists

Super Micro will benefit from its close ties with AI chipmakers including Nvidia, AMD (AMD) and Intel (INTC), he said.

Nvidia stock is on five IBD stock lists: IBD 50, Big cap 20, Department headsLeaderboards and Tech Leaders.

The super micro stock is on two IBD lists: Big Cap 20 and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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