Yesterday, NVIDIA (NVDA) stock rose 3.3% and closed at $178.23, with a $108.54 billion market capitalization. The stock is trading 39.12% below its 52-week high and 43.20% above its 52-week low.
Why did NVIDIA stock rise?
Investment bank Goldman Sachs raised its 12-month target price for NVIDIA stock from $179 to $192 yesterday. The new target implies a 7.7% upside from the stock’s September 25 closing price of $178.23. Goldman Sachs analyst Toshiya Hari reiterated his “buy” rating on the stock, according to CNBC.
Hari is betting on NVIDIA because of its gaming and data center divisions. CNBC reports that, in a note to clients, Hari wrote, “We expect the company to deliver strong sequential growth in FY3Q (Oct) in the Gaming segment supported by the normalization in channel inventory and the launch of its new products.”
NVIDIA stock is up 33.51% year-to-date. Meanwhile, chip stocks Advanced Micro Devices (AMD) and Intel (INTC) have gained around 60.0% and 8.7%, respectively. Yesterday, Intel stock rose 2.41% and closed at $51.02, and AMD stock rose 0.07% to close at $29.54. Goldman Sachs’s ratings for Intel and AMD are “sell” and “neutral,” respectively.
Analysts’ recommendations and target prices
Overall, analysts are positive on NVIDIA stock. Of the 39 analysts tracking NVIDIA, 67% suggest “buy,” 8% suggest “sell,” and the rest suggest “hold.” Their mean price target of $186.89 implies a 4.9% upside from its current price of $178.23 in the next year.
On September 23, SunTrust Robinson Humphrey analyst William Stein raised NVIDIA’s price target to $216 from $210. He recommends “buy” for the stock. The analyst expects NVIDIA’s demand and profitability to improve.
NVIDIA’s stock returns
NVIDIA stock has fallen 33.6% in the last year due to the crypto bubble burst. Yesterday, the stock closed 1.3%, 5.4%, and 9.9% above its 20-, 50-, and 100-day moving averages, respectively. NVIDIA’s 14-day relative strength index score of 56 indicates the stock is neither oversold nor overbought.
NVIDIA’s upper, middle, and lower Bollinger Bands are $189.45, $175.89, and $162.33, respectively. The stock closed near its middle Bollinger Band yesterday, indicating the stock isn’t overbought or oversold.