KeyBanc has increased the price targets for Nvidia and Micron. Analyst John Vinh raised Nvidia’s target to $180 from $130 and Micron’s to $165 from $160. The increases come as traditional server demand improves and AI needs to continue.
KeyBanc looked at data analytics and semiconductor use by region. They found AI demand is still strong and server demand is up, driven by US cloud providers, China, and enterprises. Despite a recent stock split, Nvidia stock is up nearly 160% this year.
Demand for its H100 chip stays robust. The new targets show expected growth and demand in the chip sector. This is a positive outlook for Nvidia and Micron.
One analyst thinks Nvidia stock could reach $150 after its 10-for-1 split. UBS’s Timothy Arcuri kept his buy rating and raised his target, seeing a 19% upside. Arcuri points to Nvidia’s focus on rack-scale servers as key.
In March, Nvidia shared plans for its GB200 NVL72 system with the GB200 Grace Blackwell Superchip. It has up to 72 GB200 GPUs for high throughput.
Strong chip sector demand boosts outlook
Demand for these servers is “exceedingly robust.”
This demand could push Nvidia’s EPS to $5 by 2025, up 320% from fiscal 2024. Arcuri thinks this growth makes the stock a bargain at 75 times earnings if it can reach 24 times in future development. Nvidia keeps expanding its market and potential for stock gains.
Investors and analysts are watching closely. There is debate over whether Nvidia’s rapid growth is sustainable or a bubble. The stock has soared on its GPU dominance and AI expansion.
But some worry about its high valuation. Supporters say Nvidia’s innovation and leadership position it for more gains. They cite investments in new tech and partnerships as proof.
Critics warn that Nvidia’s high price-to-earnings ratio may signal a bubble. Competition from other tech giants could impact its share and profits. The debate reflects broader questions about tech stock valuations.
As Nvidia grows in AI, the market will watch if it can meet high hopes or face a correction. In the end, investors must weigh risks and rewards. Nvidia’s future depends on maintaining growth and innovation in a competitive field.
