What took place?
In contrast to a broadly flat stock market, Nvidia (NASDAQ:NVDA) shares closed Friday more than 2% higher. This came after one of the stock’s analysts raised his price target. It also happened on a good day for cryptocurrencies, which aided in the company’s growth.
So, what’s the deal?
Mark Lipacis, a prognosticator at Jefferies, recently upgraded Nvidia stock, believing it is now worth $260 per share. That’s over $30 more than his previous objective of $233, and nearly 14% more than the stock’s current price. Lipacis’ buy recommendation on the stock remains unchanged.
Nvidia’s software and data-center business areas, according to the analyst, can help the company reach even higher. The latter has made significant progress, with sales jumping 35 percent year over year in the chipmaker’s recently announced second quarter to a new high of about $2.4 billion.
On Friday, Nvidia benefited from a cryptocurrency bull market. Because its GPUs are the product of choice for many crypto miners, sentiment in such assets might have an impact on its stock price. Bitcoin, the bellwether cryptocurrency, was trading just shy of 2% higher in late afternoon trading, similar to Nvidia’s rise, but Ethereum was up a strong 4.8 percent.
Lipacis now has a compelling case for increasing Nvidia’s price objective. In a variety of business categories, the company has proven successful. Also, keep in mind that some of the smaller ones, particularly the automotive section, have a lot of promise.