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Key Takeaways
- Nvidia shares rose Monday as chip stocks rebounded, boosting gains for the S&P 500 and Nasdaq.
- The chipmaker is reportedly making a version of its artificial intelligence chip for the Chinese market compliant with U.S. trade restrictions.
- The news comes after worries that tougher trade restrictions and geopolitical tensions could negatively affect the semiconductor industry sent chip stocks lower last week.
- Several analysts raised their price targets for Nvidia stock Monday, anticipating strong results from the chipmaker’s earnings report next month and demand for Nvidia’s products.
Nvidia (NVDA) shares climbed in intraday trading Monday as chip stocks rebounded from losses during last week’s sell-off, helping boost the S&P 500 and Nasdaq.
The gains came amid reports Nvidia is making a version of its artificial intelligence (AI) chip for the Chinese market compliant with U.S. trade restrictions, after worries about tougher trade restrictions and geopolitical tensions fueled a sell-off in chip stocks last week.
Several analysts also raised their price targets for Nvidia stock Monday, anticipating strong results from the chipmaker’s earnings report next month and demand for Nvidia’s products.
Nvidia Price Targets Lifted
Piper Sandler analysts reportedly raised their price target for Nvdia stock to $140 from $120, citing Nvidia’s second-quarter earnings report set for Aug. 28 as a potential growth catalyst and strong demand for the company’s products. Loop Capital analysts also lifted their target to $175 from $120.
Shares of Nvidia were up about 2.5% at $120.86 around 11:30 a.m. ET on Monday and have more than doubled in value since the start of the year.