NVIDIA (NASDAQ: NVDA) stock price has breached the physiological $200 mark for the first time this year. The shares are extending the upside momentum despite breaking the physiological figure. Its share price is currently hovering around $210, up 54% since the beginning of this year.
Improving market fundamentals are also adding to the NVIDIA stock price rally. This is evident from earnings beat from Intel (NASDAQ: INTC) – which is its closest peer. The market demand for chipmakers and semiconductor companies is steadily improving. The investors are also optimistic about the upcoming financial results.
Price Target Hikes are Backing NVIDIA Stock Price Upside
The market pundits have raised their price target for NVDA. For instance, Analyst Richard Shannon anticipates stronger than expected financial results for the third quarter, thanks to robust growth in the gaming business.
Analyst says, “The ray tracing ecosystem, which is developing faster than expected, will soon start to drive increased demand.”
RBC, on the other hand, claims that NVDA is the best plays among large caps. The firm says, “The company “should be a beta” on the high-end server demand recovery suggested by Intel.” The firm has increased the price target to $251 from previous target of $217.
5G Revolution and Shield TV are Among the Catalysts
The company has been aggressively working on enhancing its penetration in 5G technology. It has recently unveiled the Aerial SDK for building 5G wireless radio access networks that will operate on GPU memory.
The company also officially launched the $199 Shield TV Pro and the new $149 Shield TV. Both models have Tegra X1+ processor. This processor is likely to perform 25% better than the previous version. Shield TV does contain Google Assistant integration, AI-assisted upscaling, and support for Dolby Atmos and Dolby Vision.
Overall, NVIDIA stock price appears in a position to extend the upside momentum. Its share price could accelerate gains if the company successfully beat the consensus estimate for the third quarter.