Being a chipmaker, Nvidia has always had its hands full powering everything from computers to vehicles. The recent surge in demand for artificial intelligence, however, changed the chip-making game, adding a ton of value to the companies that make the kinds of chips that power AI.
(NVDA) is currently the biggest player in that game.
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Following a glowing earnings beat, the company forecast a record revenue of $11 billion for its current quarter, plus or minus 2%. On the heels of this forecast and an earnings beat that was driven by AI demand, Nvidia's stock surged 30% in after-hours trading, adding more than $200 billion to its market cap.
Analysts across the board, fueled by excitement over the blossoming AI industry, hurried to raise their price targets for Nvidia.
Dozens of analysts gave the stock a 'buy' rating, including UBS, which boosted its price target for Nvidia to $475 from $315.
Morgan Stanley followed suit, boosting its price target to $450 from $304; Piper Sandler boosted to $440 from $300; Bank of America boosted to $450 from $340; Goldman Sachs increased to $440 from $275.
And JP Morgan doubled its price target, boosting it to $500 from $250.
"We’ve never seen a quarter like this, in 25 years of doing this, across any of my coverage," Morgan Stanley analyst Joseph Moore told CNBC May 25. "Certainly, it's an expensive stock, but it’s also rarified territory of the one company that can put up a number like this. It’s a really impressive performance. The move, as big as it is, is consistent with just how good these results are."
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