Nvidia Stock Rises. It Needs to Look Beyond the U.S. for Growth

Dow Jones03-22

Nvidia stock was climbing Friday following the conclusion of its GTC developer event. The chip maker’s announcements got rave reviews from Wall Street but the market seems to be waiting for signs of further growth, which could come from outside the U.S.

Nvidia shares were up 2% on Friday.

Nvidia stock closed up 1.2% at $914.35 on Thursday, meaning it gained just more than 4% over the duration of its developer event, where it unveiled its new range of Blackwell chips. 

Updates from Wall Street in the wake of the event were still trickling in at the end of the week. UBS analyst Timothy Arcuri raised his target price on the stock to $1,100 from $800, keeping a Buy rating. 

“Following the Blackwell launch … we believe Nvidia sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns — with each sovereign potentially as big as a large U.S. cloud customer,” Arcuri wrote in a research note Thursday. 

Nvidia CEO Jensen Huang repeatedly has suggested each country will need to build its own artificial-intelligence infrastructure, supporting the company’s continued growth even if U.S. technology companies eventually slow their purchases of its hardware. UBS’s Arcuri said any near-term weakness in Nvidia stock could be an attractive buying opportunity, with more revenue growth coming in 2025.

Among other chip makers, Advanced Micro Devices was down 1.7% on Friday and Intel was down 0.3%.

Nvidia shares have risen 85% this year through to Thursday’s close. That compares with a 9.9% increase in the S&P 500 index and a 9.3% gain in the Nasdaq Composite over the same period. 

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Comments

  • nywles
    03-23
    nywles
    Thanks 
  • Dylly.P
    03-23
    Dylly.P
    Stock is good
  • Bodoh
    03-23
    Bodoh
    Beyond the U.S. there are a few wars that will send the stock crashing to 500$$
  • PunkyBen
    03-23
    PunkyBen
    How will nvidia stock price will end in 2024? 
  • Crouchy Tiger
    03-22
    Crouchy Tiger
    Every country has a yearly defense budget. Now there will be a sovereign AI budget for each country.
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