- NVIDIA is defended by KeyBanc as the best-in-class AI chip play, with analysts doubting rivals can meaningfully catch up soon.
- Morgan Stanley reinforced its bullish outlook on Nvidia after meetings at Computex, maintaining an ‘Overweight’ rating and a $288 price target.
- The company unveiled its new RTX Spark AI superchip for Windows laptops and PCs, aiming to create the “personal AI computer.”
- Retail sentiment on platforms like Stocktwits remained bullish, with shares up 15% year-to-date and 52% over the past 12 months.
During an interview with CNBC, KeyBanc Capital Markets senior research analyst John Vinh defended Nvidia Corp.’s (NVDA) current valuation, calling it “perplexing” while backing the company as the premier AI chip investment. Vinh stated, “Nvidia is still hands down the best-in-class AI chip play in the sector” and expressed doubt that any competitor could gain meaningful traction against it soon on the merchant silicon side. Consequently, Nvidia remains KeyBanc’s favorite in the sector due to its favorable risk-reward ratio, even as shares dipped slightly in Thursday’s opening trade.
Meanwhile, Morgan Stanley analysts became “more bullish” on Nvidia following its keynote at the ongoing Computex conference in Taiwan, according to a note reported by TheFly. The firm’s meetings with Nvidia management reinforced its optimistic outlook on the company’s leadership in AI-focused GPUs and its expanding CPU business. Morgan Stanley added that Nvidia remains the best value among processor stocks, while maintaining its ‘Overweight’ rating and $288 price target.
At the same conference, Nvidia unveiled a new AI chip, the RTX Spark, designed to power laptops and personal computers running Microsoft Corp.’s (MSFT) Windows. CEO Jensen Huang described the superchip as bringing everything Nvidia has built into a single package, declaring it the foundation for the “personal AI computer.” Retail trader sentiment on platforms like Stocktwits trended bullish, with some users predicting the stock could rise above $300 this year.
Nvidia stock is up 15% year-to-date and 52% over the past 12 months. This performance compares to a 27% gain for the S&P 500 ETF (SPY) and a 41% gain for the Invesco QQQ Trust ETF (QQQ) over the same period. The iShares Semiconductor ETF (SOXX) has significantly outpaced the broader market, rising 188% over the past 12 months, as detailed in the provided data.
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