NVIDIA Corporation (NVDA): Raymond James Raises Target to $170, Sees Strong Demand from Hopper and Blackwell GPUs
We recently compiled a list of the 15 AI Stocks That Are Dominating Headlines. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other AI stocks that are dominating headlines.
The European Union recently released the initial draft for the general-purpose AI code of practice under the AI Act, its comprehensive framework aimed at regulating artificial intelligence. This section of the AI Act, which became law earlier this year, specifically addresses general-purpose AI model providers, setting out standards and practices they must follow to ensure responsible AI development and deployment. Some of the AI models that will be impacted by regulations drafted as discussions on this draft progress include GPT models by OpenAI and Claude by Anthropic, among others.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Meanwhile, London-based AI startup Tessl recently raised more than $125 million in a funding round led by prominent venture capital firms like Index Ventures, Accel, GV, and Boldstart. According to a report by TechCrunch, this has pushed the valuation of the startup to more than $500 million. The startup is building an AI native platform that developers and their teams can use to create and maintain software. The firm is still developing the product and plans to launch it in the open market by sometime next year. The basic idea behind the business is to help write code to match specifications set by developers and their teams, in natural language or code.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
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A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
Market Capitalization: $3.6 Trillion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. On November 14, Raymond James analyst Srini Pajjuri raised the price target on the stock to $170 from $140 and kept a Strong Buy rating on the shares. Raymond James sees another strong quarter driven by healthy Hopper demand and early Blackwell ramps, but supply remains a wildcard and consensus has already moved higher, which could limit near-term upside, the advisory told investors in a research note. The advisory thinks $34 billion revenue for Q3 and $37 billion – $37.5 billion guidance is a more likely outcome, and says its base case is for Nvidia to ship roughly 100,000 Blackwell GPUs in Q4, near the low-end of expectations, though Blackwell ramps should accelerate in the first half of 2025 and see strong demand through 2025. Raymond James views any pullback due to high expectations as a buying opportunity.
Overall NVDA ranks 1st on our list of the AI stocks that are dominating headlines. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.