BIZARRE: Are analysts too bullish on nvidia - You Need To See This

Nvidia (NVDA) soared to a record high last Thursday after reporting blowout earnings for its fiscal second quarter and forecasting Q3 sales of $16 billion, well ahead of estimates of $12.5 billion.  The outlook underscores Nvidia’s role as the key beneficiary of the artificial intelligence (AI) craze.  Data center operators are stocking up on Nvidia’s processors, which are adept at handling the heavy workloads required by AI applications. The expected surge in demand for Nvidia’s chips has many analysts ramping up their price targets for the stock, fueling concerns some may be overly bullish.

The rally in Nvidia to a new record high has prompted analysts to raise their price targets for the stock to 32% above its current price.  Rosenblatt Securities said, “Nvidia’s epic print and guidance higher two quarters in a row is simply unprecedented and just getting started,” as it raised its price target on the stock to $1,100 from $800.  The average analyst price target on Nvidia has risen to $644 in the wake of last week’s stellar earnings report.  That implies a 32% gain on top of the 234% the stock has already advanced this year.