Why Nvidia Stock Is Rising Today


NVIDIA Corp NVDA shares are trading higher Tuesday following positive analyst coverage from BofA Securities.

What To Know: BofA is out with a new note on U.S. semiconductor stocks. The analyst firm is positive on the group as a whole, but Nvidia remains its top pick as generative AI excitement builds.

"There is no ignoring the excitement in the emerging field of Generative AI that is helping create novel text, image and video content, and large productivity gains in a wide range of applications. NVDA remains our top pick with its new AI pipeline," BofA analysts wrote in a new note to clients.

The analyst firm noted that Nvidia's AI pipeline includes Hopper accelerators, Grace CPU, Bluefield DPU and optimized software. 

Nvidia shares are up approximately 20% since the start of the year. BofA attributed the strong gains to AI excitement as well as potential for a recovery in gaming. 

BofA has a $215 price target on Nvidia shares. Risks to the firm's target include weakness in gaming, competition, potential shipment restrictions, potential decelerating capital returns and elevated opex growth.

See Also: Nvidia Surges To Hit This Bellwether — Will The Stock Confirm A Bull Cycle?

NVDA Price Action: Nvidia has a 52-week high of $289.46 and a 52-week low of $108.13.

The stock was up 4.18% at $176.08 at time of publication, according to Benzinga Pro.

Photo: courtesy of Nvidia.

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