This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) traded higher on Monday after several Wall Street banks boosted their expectations for the chipmaker, citing strengthening demand for its latest artificial intelligence processors.
Loop Capital set a new Street-high price target of $350 a share, up from $250, saying the company may see a sharp increase in GPU system shipments over the next year. The target would imply an equity value of roughly $8.5 trillion.
Shares trimmed early gains but were still up about 3% in afternoon trading.
Rosenblatt Securities also raised its target on the stock to $240 from $215 while reiterating a Buy rating.
The optimism follows Nvidia’s recent GTC developer event, where Chief Executive Jensen Huang said the company has line-of-sight into $500 billion in cumulative sales for its Grace Blackwell and Vera Rubin chip platforms through 2026.
Huang highlighted growing use cases for its accelerated computing technology across cloud AI training, telecom infrastructure, healthcare, robotics, enterprise software and scientific modeling.
Investors have pushed Nvidia’s market value to nearly $5 trillion, as expectations rise for continued leadership in high-performance chips powering the next wave of artificial intelligence adoption.