TLDR:
- Nvidia stock reached a record high, rising 2.4% to $138.07 on October 14, 2024
- The company’s market cap hit $3.4 trillion, nearing Apple’s $3.5 trillion valuation
- Strong AI chip demand and positive analyst reports are driving Nvidia’s stock gains
- Nvidia is expected to report Q3 revenues of $33 billion, up 82% year-over-year
- Analysts remain bullish, with 90% recommending buying Nvidia shares
Nvidia’s stock price hit a new record high on October 14, 2024, closing at $138.07, up 2.4% for the day. The surge puts the chipmaker within striking distance of overtaking Apple as the world’s most valuable company by market capitalization.
Nvidia’s market value reached $3.4 trillion, just shy of Apple’s $3.5 trillion valuation. The company’s stock has risen sharply in October, fueled by strong demand for its AI chips and positive analyst reports.
![NVIDIA Corporation (NVDA)](https://moneycheck.com/wp-content/uploads/2024/10/nvidia-stock-price.png)
The stock’s climb began on October 2 following news of a $6.6 billion funding round for OpenAI, much of which is expected to be spent on Nvidia’s AI chips. Wall Street analysts have reiterated their buy ratings on Nvidia shares, with KeyBanc estimating that revenues from Nvidia’s new Blackwell chips alone could reach $7 billion in the fourth quarter.
Nvidia showcased its software offerings at its AI Summit in Washington, D.C., and announced plans with Foxconn to build Taiwan’s largest supercomputer. The company is also reducing its reliance on China by partnering with Foxconn to assemble servers using its Grace Blackwell chips in Mexico.
The semiconductor industry as a whole is seeing strong growth, with sales rising 28% in August from the prior year. Foxconn’s chair told Bloomberg Television that the company is boosting capacity to meet “crazy” demand for Nvidia AI chips.
Nvidia is set to report earnings on November 19, with Wall Street analysts expecting revenues of $33 billion, up 82% from the prior year. Some 90% of analysts covering the stock recommend buying Nvidia shares.
TD Cowen analyst Joshua Buchalter maintains a buy rating on Nvidia stock with a price target of $165, implying potential upside of 22%. Buchalter believes that demand for Nvidia’s Hopper and Blackwell platforms remains strong, with any production delays likely to push upside into future quarters.
Citigroup analyst Atif Malik reiterated a $150 price target and buy rating on Nvidia shares, projecting that the company will capture a significant share of cloud provider spending on AI accelerators. Goldman Sachs analyst Toshiya Hari raised his price target to $150, citing Nvidia’s potential benefit from increasing AI workload complexity.
Despite concerns about potential risks to Nvidia’s streak of beat-and-raise earnings, analysts remain optimistic about the company’s growth prospects in the AI chip market.
The consensus on Wall Street is a Strong Buy rating, with an average price target of $152.86, suggesting potential upside of 11% over the next 12 months.
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