Neuberger Berman senior research analyst and managing director Daniel Flax provides insight on the company's ecosystem on 'Making Money.<\/p>\n
The stock price of chipmaker Nvidia surged Tuesday, extending a months-long rally, following a \"buy\" recommendation from HSBC.<\/p>\n
In a client note, HSBC Head of Technology Research Frank Lee said his company was \"throwing in the towel\" on a previous \"reduce\" recommendation for Nvidia.<\/p>\n
The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017. REUTERS\/Tyrone Siu\/\/File Photo (Reuters Photos)<\/p>\n
\"We were too focused on the slowdown in datacenters, but what really surprised us was its pricing power on AI chips,\" Lee wrote.<\/p>\n
\"In particular, were shocked by Nvidias pricing power on A.I. chips that we see driving earnings upside, higher valuation.\"<\/p>\n
MICROSOFT IS DEVELOPING ITS OWN AI CHIP: REPORT<\/p>\n
Per Refinitiv data, Lee was the only one of nearly 50 analysts covering Nvidia to have a negative rating on the chipmaker. Hes now lifted his price target on Nvidia to $355 from $175.<\/p>\n
With a more than 90% rally this year, Nvidia ranks among the S&P 500s top-performing stocks. It has rebounded around 150% from its low in October, but shares remain down about 17% from record highs in November 2021.<\/p>\n
Investors are widely betting that Nvidia will continue to be a major player in the emerging wave of A.I. computing. HSBC forecasts that NVIDIA will hold a 90% market share in the fiscal year 2024. <\/p>\n
FILE: A sign is posted at the Nvidia headquarters on May 25, 2022, in Santa Clara, California. (Photo by Justin Sullivan\/Getty Images \/ Getty Images)<\/p>\n
With a market capitalization of $687 billion, Nvidia has become the fifth most valuable company on Wall Street, trailing behind Googles Alphabet, Amazon, and Microsoft.<\/p>\n
The bulk of Nvidias gains has come in the past three months, as the public launch of the AI-powered chatbot called ChatGPT in late November sparked a new wave of enthusiasm for so-called generative AI, and how it could revolutionize services like internet search, product design, writing and programming.<\/p>\n
CLICK HERE TO GET THE FOX BUSINESS APP<\/p>\n
The new technology requires intense computing power in data centers, where Nvidia has already built up a large-and-growing business for its graphics processors and software designed for AI applications. The company made a slew of announcements Tuesday as part of its annual GTC developers conference that focused mostly on generative AI opportunities.<\/p>\n
FOX Business Dan Gallagher and Reuters contributed to this report.<\/p>\n
<\/p>\n
Here is the original post:<\/p>\n
Nvidia stock surges on dominant A.I. market position, buy recommendation from HSBC - Fox Business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Neuberger Berman senior research analyst and managing director Daniel Flax provides insight on the company's ecosystem on 'Making Money. The stock price of chipmaker Nvidia surged Tuesday, extending a months-long rally, following a \"buy\" recommendation from HSBC. Continue reading