NVIDIA computer graphic cards are shown for sale at a retail store in San Marcos, California.
Mike Blake | Reuters
Shares of Nvidia rose 6% on Friday after the chipmaker stunned analysts with strong quarterly results and joined rivals Intel and Advanced Micro Devices in predicting strong demand for chips used in the latest generation of data centers and A.I.
At least 11 brokerages hiked price targets on the company’s stock. Brokerage Cowen & Co. was the most bullish, raising its target by $85 to $325, higher than Wall Street’s median price target of $285.15 and Friday’s pre-market price of around $287.
Analysts at Susquehanna said while they had expected the company to beat market consensus expectations thanks to the data center demand, they had never expected this kind of upside.
“Nvidia’s dream-a-dream A.I. story is solidly back on track,” analysts from the brokerage said in a note to clients.
Chipmakers have had a rollercoaster ride over the past two years, with President Donald Trump’s trade war with China and the fading of a boom in mobile phone development and sales eating into growth. New markets in self-driving cars, internet of things appliances and the huge data centers needed to drive booming e-commerce and new online functionality, by contrast, are still developing.
Sales from Nvidia’s data center business, which serves clients developing products related to artificial intelligence, surged 43% in the fourth quarter to $968 million. Jefferies analysts projected a 34%…
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