Finance
Here’s Why Nvidia Stock Jumped Today
Nvidia (NASDAQ: NVDA) The stock posted significant gains during Monday’s trading. According to data from the artificial intelligence (AI) leader, its stock price rose 4.1% during the daily session S&P global market information.
Nvidia shares got a boost in today’s trading as investors and analysts reassessed the impact of a potential delay for the first generation of the company’s upcoming Blackwell processors. The company’s stock price also likely got a boost from news that the graphics processing unit (GPU) leader had signed a new AI training agreement with the state of California.
Nvidia continues to make gains in the public sector
Nvidia has emphasized the importance of development AI systems for countries. The company expects a dramatic increase in public sector spending to develop artificial intelligence systems as countries look to strengthen national defense capabilities and overall sovereignty. The announcement of the new training partnership with California reflects a similar dynamic at the US state level. It wouldn’t be surprising if Nvidia announced additional AI training agreements with other states in the near future.
Are Nvidia shares on track for more big gains?
UBS today issued a report on Nvidia, maintaining a buy rating on the stock and a one-year price target of $150 per share. Shares of the artificial intelligence leader have seen volatile trading lately as investors have weighed concerns about expectations that the first Blackwell processors will be delayed. With the company closing today’s daily session at roughly $109 per share, UBS’s near-term price target suggests upside of around 38%.
The first releases in the Blackwell line are expected to deliver a substantial leap in processing power and are expected to be a major performance driver for Nvidia this year. In general, the market has also shown some timidity lately when it comes to the valuations of mega-cap companies and leading AI players. But the bank thinks the technology stocks are undervalued at current prices.
UBS expects that a possible delay for the first Blackwell processors would still see them hit the market in late January 2025, and the bank’s stock analysts think overall demand for Nvidia processors will remain very strong. While some analysts have predicted the AI leader’s profits will reach a short-term peak in 2025, UBS thinks profits are likely to grow in 2026 as well.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Nvidia. The Motley Fool has one disclosure policy.
Here’s Why Nvidia Stock Jumped Today was originally published by The Motley Fool
