NVIDIA Corp shares rose nearly 3% to $446.09 in midday trading on Monday after Goldman Sachs analysts added the semiconductor manufacturer to the bank's 'Americas Conviction List', an upgrade from its previous 'Buy' rating, while maintaining their $605 per share target price on the stock.
"Look for Nvidia to maintain its statues as the accelerated computing industry standard for the foreseeable futures given its competitive moat and the urgency with which customers are developing and deploying increasingly complex AI models," the analysts wrote.
They also noted that supply constraints are beginning to ease and expect the robustness in Nvidia's data center business to continue.
As well, analysts at Goldman believe Wall Street is underestimating the potential gross profit margin increases from an improving product mix.
In August, the world's largest AI chipmaker forecast current quarter revenues of about $16 billion after reporting better-than-expected 2Q 2023 financial results.
Shares of NVIDIA have soared more than 211% year to date.
Contact Sean at sean@proactiveinvestors.com