Major AI chip brands NVIDIA Corporation (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) shares continued to ride the artificial intelligence wave on Monday.
Wall Street looks to AI contract chipmaker leader Taiwan Semiconductor Manufacturing (NYSE:TSM) is expected to report a 30% increase in second-quarter profit on Thursday, with the market expecting Taiwan Semiconductor to post net income of $7.25 billion for the quarter ending June 30.
Read also: Nvidia highlights benefits for cloud providers using Nvidia GPUs
Technology investor James Anderson predicted that the company’s key role in shaping demand for AI chips could see its market capitalization reach nearly $50 trillion within the next decade.
He noted that if data center revenue maintains its 60% annual growth, NVIDIA could achieve earnings of $1,350 per share and free cash flow of $1,000 per share.
Nvidia shares have risen more than 178% in the past 12 months, while AMD has risen more than 53% in that same period.
Investors can gain exposure to the semiconductor sector through the following means: ProShares Ultra Semiconductors (NYSE:USD) and Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ).
NVIDIA Stock Prediction 2024
Stock research is a valuable source of information to learn about the fundamentals of a company. Analysts create financial models based on fundamental knowledge of a company and its future expected earnings to determine price targets and stock recommendations.
The one-year average price target for NVIDIA shares is $827.85, implying an upside potential of 536.49%.
Differences in assumptions can lead analysts to arrive at vastly different price targets and recommendations. No analysts have a bearish recommendation on NVIDIA, while 47 have a bullish rating. Cantor Fitzgerald has a market high price target of $1,400.0, while Goldman Sachs has a market low price target of $135.0.
Price Action: NVDA shares were trading at $130.22, up 0.76%, as of last check on Monday, while AMD was up 0.19% to $181.96.
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The article What’s happening with AI stocks Nvidia, AMD on Monday? originally appeared on Benzinga.com.
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