A Wall Street firm on Wednesday raised its price targets on Nvidia stock and Super Micro Computer ahead of Nvidia's GTC conference for AI developers next week.
BofA Securities analyst Vivek Arya said news from the Nvidia GTC show, which he called "AI Woodstock," could be a catalyst for Nvidia stock. He reiterated his buy rating on the graphics-chip maker and raised his price target to 1,100 from 925.
On the stock market today, Nvidia stock fell 1.1% to close at 908.88. However, year to date, Nvidia is still up nearly 84%.
Nvidia Chief Executive Jensen Huang will kick off the four-day GTC conference and expo late Monday with a keynote presentation. GTC is taking place in San Jose, Calif.
In a client note, Arya said he expects Nvidia to showcase its extensive product pipeline across AI accelerators, Ethernet switches, data center hardware, PC gear, software and services.
Nvidia also is likely to tout the opportunity to re-architect $1 trillion to $2 trillion of global computing infrastructure with accelerators. That could result in an annual market opportunity of $250 billion to $500 billion over the next three to five years, Arya said.
Super Micro 'Well Positioned' In AI Servers
Elsewhere at BofA Securities, analyst Ruplu Bhattacharya hiked his price target on data center computer maker Super Micro Computer to 1,280 from 1,040. He kept his buy rating on Super Micro stock.
On Wednesday, Super Micro stock advanced 2.2% to close at 1,188.07.
Super Micro "is well positioned to benefit from a growing AI server market," Bhattacharya said in a client note. "The company is putting in capacity to support strong demand and revenue growth."
He expects industry sales of artificial intelligence servers to grow from about $39 billion in 2023 to about $200 billion in 2027.
Nvidia Stock Is On 5 IBD Lists
Super Micro will benefit from its close relationships with AI chipmakers including Nvidia, AMD and Intel, he said.
Nvidia stock is on five IBD stock lists: IBD 50, Big Cap 20, Sector Leaders, Leaderboard and Tech Leaders.
Super Micro stock is on two IBD lists: Big Cap 20 and Tech Leaders.
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