Nvidia (NASDAQ: NVDA) stock price bounced back sharply after experiencing the bearish trend in the first half. The share price momentum is driven by the trader’s confidence in improving market fundamentals for semiconductor companies.
Strengthening market position amid 5G is adding to investor’s sentiments. Nvidia stock price is currently trading slightly below from $200 level.
The shares have been struggling to cross $200 mark over the last eleven months. NVDA shares had hit a 52-week low of $135 at the end of the first half of this year.
Analysts See Gains for Nvidia Stock Price
Despite the recent share price rally, analysts are seeing further upside momentum for NVDA shares. For instance, Bank of America has set a price target of $250 with a Buy rating.
The bank says the trader’s confidence in NVDA’s growth profile is improving due to the natural language processing tech. The bank said, “NVDA’s data center growth is on the cusp of benefiting from the next-big AI landmark.”
BofA, on the other hand, believes NVDA is in a better position to outperform peers. “No other company is able to leverage common parallel compute architecture at scale,” BofA said.
RBC Capital Markets has increased the price target to $217 with a buy rating. The upside target is because of RBC’s confidence in improving gaming GPU demand along with the potential growth in the data center business. RBC said, “We believe that we’re past the bottom from a demand perspective.”
Trade Deal Supports Share Price
Tech companies have experienced significant volatility in financial numbers and share price amid trade war conflict between the two largest economies. The initial trade deal between the United States and China helped in enhancing the trader’s sentiments.
President Trump recently tweeted that good things are happening at the China trade talk meeting. The warmer feelings from the president indicate good things are likely to happen. Overall, the trader’s sentiments regarding Nvidia stock price is escalating.