Connect with us

Bussiness

Nvidia’s First Trading Day After Its Stock Split Brings Slight Gain and Price-Target Hikes

Published

6 months ago

on

Nvidia’s First Trading Day After Its Stock Split Brings Slight Gain and Price-Target Hikes

Key Takeaways

  • Nvidia shares finished slightly higher Monday after the chipmaker’s 10-for-1 stock split, and several analysts raised their price targets for the stock. 
  • Barclays, Susquehanna, and TD Cowen analysts lifted their price objectives for Nvidia stock from their previous targets on a split-adjusted basis.
  • The split-adjusted stock price could make ownership more accessible to a wider range of investors, with Morgan Stanley analysts highlighting that Nvidia stock is more affordable than Advanced Micro Devices.

Nvidia (NVDA) shares finished 0.8% higher at $121.79 Monday in the stock’s first day of split-adjusted trading after a 10-for-1 forward stock split, and several analysts raised their price targets for the stock. 

Barclays analysts updated their price target to $145 after the split, up from a split-adjusted $120 or $1200 before the split. The analysts took the opportunity to reiterate their view that Nvidia could see incremental growth in artificial intelligence (AI) product revenue and benefit from sovereign AI.

Susquehanna and TD Cowen analysts also reportedly lifted their price objectives for Nvidia stock from their previous targets on a split-adjusted basis, citing confidence in Nvidia’s strengths.

Nvidia’s split-adjusted stock price could make ownership more accessible to a wider range of investors. Morgan Stanley analysts highlighted that Advanced Micro Devices (AMD) shares now run at a higher price point than Nvidia, which the analysts said gives them “more confidence on upward revisions to AI forecasts” for Nvidia.

An increase in demand for the stock at a lower price per share could potentially lead the AI darling’s stock price to rise even higher.

Related Topics:
Continue Reading