Nvidia: leads the S&P 500, UBS raises its target price

(CercleFinance.com) - Nvidia shares were among the biggest gainers on the S&P 500 index in early trading on Monday, as UBS raised its price target for the stock.


The stock closed up 3.7%, giving the AI chipmaker a market capitalization of nearly $3,150bn.

In a note released this morning, UBS - which has a Buy recommendation on the stock - indicates that it has raised its target from $120 to $150.

The broker explains that its recent contacts within the logistics sector suggest that demand for Blackwell's graphics processor architecture remains "extraordinarily strong".

UBS notes, however, that market sentiment surrounding the stock - while still largely positive - has waned somewhat in recent weeks, taking the form of a 'wall of worry' that could prove interesting if the positive thesis developed by its analysts were to materialize.

Last Friday, teams at New Street Research downgraded their recommendation on Nvidia, judging that the stock's forecasts and valuation now warranted greater caution.


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