A Wall Street analyst said Monday that the bull case remains in place for Nvidia (NVDA) stock, despite its recent volatility. The next catalyst for Nvidia shares could be the chipmaker's fiscal second-quarter results due Aug. 28, he said.
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Piper Sandler analyst Harsh Kumar raised his Nvidia stock price target to 140 from 120 and reiterated his overweight, or buy, rating.
On the stock market today, Nvidia stock rose 4.8% to close at 123.54.
"We view the setup for Nvidia positively ahead of the July-quarter earnings and the October-quarter guidance," Kumar said in a client note. "We see the strong business trends exhibited over the prior year by Nvidia set to continue, aided by official launch of the Blackwell architecture in the October quarter."
Nvidia remains the premier player in accelerated computing and processors for generative artificial intelligence, he said.
Nvidia Stock Bounces Off 50-Day Line
Since hitting a record high of 140.76 on June 20, Nvidia stock has had a rocky ride. During the last three trading sessions, Nvidia stock tested support at its 50-day moving average line.
On Monday, Nvidia stock bounced off that key support level and surged higher.
"Overall demand appears to be extremely strong for Nvidia and the main focus of the company appears to be supply procurement," Kumar said.
He added, "Importantly, Nvidia is seeing strength in bookings for its new Blackwell launch, but also existing products such as H100 as well as the H200 (launched in fiscal Q2 2025). In our view, Nvidia continues to have demand visibility that extends into the middle of calendar year 2025 at a minimum."
Elsewhere on Wall Street, Loop Capital analyst Ananda Baruah raised his price target on Nvidia stock to 175 from 120. He maintained his buy rating.
Nvidia Put On 'Positive Catalyst Watch'
Meanwhile, Citi analyst Atif Malik opened a "30-day positive catalyst watch" on Nvidia shares ahead of the SIGGRAPH 2024 conference. Nvidia Chief Executive Jensen Huang is set to speak at the conference. The show focuses on computer graphics and interactive digital technologies.
Citi has a buy rating on Nvidia stock with a price target of 150.
On July 29 at the show, Huang will have a public discussion with Meta (META) Chief Executive Mark Zuckerberg to discuss the future of artificial intelligence.
Malik said the discussion should shed positive light on how Nvidia's end customers get a return on investment from buying Nvidia processors for AI applications.
Nvidia stock is on four IBD lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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