NVIDIA Corp (NASDAQ:NVDA, ETR:NVD)'s upcoming GTC conference next week could provide a positive boost to its shares if it highlights the robust demand for its AI chips, analysts believe.
The global AI conference led by the chipmaker takes place from March 18 to 21 and will feature insights from developers, engineers, inventors, and researchers.
Analysts at Wedbush believe the “potential for newsflow” can act as a positive catalyst, while the scale of the event and comments from professionals potentially “suggesting end demand… remains robust”.
One example the tech analysts pointed to was recent comments from Oracle, the multinational cloud specialist, which reported strong demand for “large contracts” as the need for ‘Gen2 AI infrastructure substantially exceeds supply.”
Therefore Wedbush has upgraded Nvidia’s price target from US$850 to US$1,000, representing a nearly 13% premium to the AI chipmaker’s current market value.
“We believe the higher valuation is supported by strong current fundamentals that are again likely to eventually yield stronger growth than is currently being modelled for Nvidia,” Wedbush said.
On Wednesday, Bank of America upped its Nvidia price target to $1,100 from $925.
BoA anticipates the conference will highlight the rising impact of generative AI, omniverse and digital twins across various end markets and the opportunity to re-architect nearly $1-$2 trillion of global computing infrastructure with accelerators.