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Nvidia's stock is going up after a series of developments that demonstrate a bright future for the company. Wall Street is bullish, too.
Even after a triple-digit rally so far this year, graphics chipmaker Nvidia’s stock is not done yet.
The company was among the leaders Tuesday on the tech-heavy Nasdaq gaining over 3%. The Nasdaq, meanwhile, is being dragged down by major tech giants like Apple.
NVDA’s surge coincides with the company’s GPU Technology Conference, which is being held virtually.
Since the virtual conference started Monday, the stock is up over 5%.
Year-to-date, the stock has surged by about 140%. The stock hit a record high early last month.
Nvidia’s rally comes after a series of developments that are an indication of the chipmaker’s bright prospects. At the virtual conference, multiple new products and partnerships have been announced.
While Nvidia is known for its graphics processing units that are popular in gaming, the virtual conference highlighted the company’s growing prowess in artificial intelligence.
Among the customers who are now using Nvidia’s AI technology include Microsoft and American Express. Microsoft is adopting Nvidia AI on Azure, which will be applied to grammar correction and text prediction on Microsoft Office, among others.
At American Express, Nvidia AI has been adopted in preventing fraud and foiling cybercrime.
Nvidia is additionally unveiling a new AI starter kit targeting hobbyists, students, and educators.
At the virtual conference, the company announced that it had inked a deal with British pharmaceuticals giant GlaxoSmithKline for the use of its computing and artificial intelligence technology in data-driven drug discovery.
Additionally, Nvidia is in the process of building the most powerful computer in the U.K., which will be made available to healthcare researchers.
Other announcements include new data processing units specifically tailored for use in data centers.
The latest surge comes less than a month since Nvidia announced it was acquiring chips designer Arm from Softbank for $40 billion.
It’s the largest semiconductor deal ever by dollar value and is expected to boost Nvidia’s data center business.
The surge in NVDA came after BMO Capital raised the stock’s target price to $650 from $565. The price hike is based on the belief that Nvidia’s business is “going into overdrive.”
Other analysts are equally bullish. Analysts at Evercore ISS see “enormous growth potential” for many more years to come.
Among the 37 analysts currently covering the stock, the consensus rating is overweight.
The highest price target is $700, which represents an upside potential of over 25%.