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Analysts Update INVISTA Price Target After Stock Plunge
That's what could happen to INVISTA stock next.
There is no doubt which company is currently the dominant player in the field of artificial intelligence.
INVISTA (NVDA) Owns most of the share of the AI chip market in High 耑, and its shares have skyrocketed 2,09% in the past year.
Jensen Huang, NVIDIA's chief executive officer, predicted that the proliferation of accelerated computing and generative AI would present a "huge opportunity" for the company.
Hwang's team showcased its latest AI solutions at Nvidia's annual GTC conference in March.
Nvidia's new Blackwell GPUs are 2.5 to 5 times more powerful than its Hopper platform chips, including the H100 and H200.
In February, Reuters reported that the Santa Clara, California-based company is creating a new business unit focused on designing custom chips, including advanced artificial intelligence processors, for cloud computing companies and others.
Nvidia is hoping to gain a foothold in the exploding market for custom AI chips and insulate itself from the growing number of companies pursuing silicon alternatives.
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Analyst: "Volatility is nothing new
The company's stock price has fallen recently, but TheStreet Pro's resonant Chris Versace isn't discouraged.
"We're adding to our holdings of the recently retraced NVIDIA stock, and this week's AI, cloud computing and data center news shows that these three areas remain a focus for corporate investment to keep its growth momentum going," he said.
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As far as possible, Gwen has a message called "Gugu Ge" (穀歌).GOOG) and Facebook parent company Meta Platforms (META) will invest in its own AI chips, but Versace said, "Current capacity shortfalls and the estimation of Nvidia securing up to 75% share of the AI gas pedal market validate that Nvidia is still well-positioned.
Technology stocks were hit hard Friday after The Wall Street Journal reported that China is ordering the country's largest telecom carrier to stop using foreign chips.
The Wall Street Journal, citing people familiar with the matter, reported that Chinese officials issued a directive earlier this year requiring telecom carriers to replace non-Chinese core processors by 2027.
Advanced Micro Devices, Inc.AMD) and Intel Corporation (INTC) Closed in the red.
China accounted for 27% of Intel's revenue in 2023, making it its largest market. AMD accounted for 15% of sales in China (including Hong Kong) last year.
Bank of America analyst Vivek Ary addressed the recent sell-off in INVESCO stock in an April 9 research note, telling investors that "volatility is nothing new."
Alia maintains a Buy rating on Nvidia, with a price target of $1,100.
"There are a number of market factors such as the recent rise in inflation, volatility (VIX), weakness in AI stocks, cyclical sector rotation, and possibly some tinkering ahead of the upcoming earnings season," he said.
Suspension of worries 'unfounded'
Nvidia's new Blackwell GPUs offer between 2.5 and 5 times more features and experience than its Hopper platform chips, including the H100 and H200.
In terms of fundamentals, the analyst said he's heard concerns from investors about increased competition and shortened lead times for NVDA's GPU gas pedal, which are expected to get longer as demand for Blackwell grows.
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"He said, "While the recent mass of NVDA stock is likely to be a summer consolidation (as was the case in August-December of last year), we believe that the underlying flour is on the right track, and that a period of consolidation (a rocky road) often sets up the stock for a strong move in the future.
On Thursday, Raymond James raised its price target for the stock to $1,100 from $850 per share.
The company's analysts held a virtual investor meeting with Simona Jankowski, Nvidia's vice president of investor relations. While management did not comment on recent trends, they did say, "We are confident in the demand for Gen AI, the Blackwell GPU ramp, and the company's full-stack leadership."
"We believe that concerns about a potential pause in customer spending prior to the Blackwell promotion are unwarranted as inference demand continues to outpace GPU supply," the company said.
Raymond James said that Nvidia typically ships previous-generation products within a few quarters while the new product is in volume production.
"In addition, the H200 processor will be upgraded starting in the second quarter, which will maintain the strong momentum in the coming quarters," the company said.
Nvidia utilizes its core GPU technology in a number of markets, making its business highly scalable, Raymond James said.
"The company's ability to offer high-performance chips along with a full suite of solutions sets it apart from its semiconductor peers," the company said.
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