Barclays Just Raised Its Price Target on Nvidia (NVDA) Stock

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Nvidia (NVDA) is among the leading AI stocks investors continue to focus on, for good reason. The company’s high-performance chips power most companies building new applications in this space, and NVDA stock has benefited from some of the most robust secular tailwinds.

However, there are plenty of other catalysts investors are pricing in today. On Friday, after the market closed, the company took on a 10-for-1 stock split, with the stock maintaining strong momentum in the move. Analysts are now chiming in on this split and what it means for the stock, with several firms raising their price targets for the company.

Let’s dive into these upgrades and what they may mean for investors moving forward.

NVDA Stock Moves Higher on Analyst Upgrades, Stock Split

During this recent tech-driven bull market, stock splits have been catalysts for a number of high-flying stocks. As a given stock price surges, certain investors get priced out of the market due to restrictions at some brokerages and trading houses that require investors to purchase whole shares of given companies. Additionally, companies that take on stock splits can better incentivize employees with stock, and these splits can typically lead to a broader investor base over time.

Nvidia is likely to continue to benefit from sovereign purchases of AI chips, as well as wider-spread corporate adoption of these chips. As Nvidia’s order backlog increases, the company’s revenue and profit growth potential appears to be only restricted by production capacity at this point in time. For Nvidia, that’s likely to lead to even greater growth than many analysts have already priced in.

For these reasons and others, analysts from Barclays, Susquehanna and TD Cowen increased their price targets on Nvidia. Barclays raised its target to $145 (from $120), Susquehanna did the same, and TD Cowen analysts raised their target to $140 from $120 as well. With Nvidia now trading above these analysts’ previous price targets, this upgrade certainly makes sense.

For now, analysts certainly appear to be chasing the stock and have only been correct in upgrading it over time. Until the incredibly high demand for NVDA stock slows down, we’re likely to see more upgrades moving forward.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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