What's Going On With Nvidia Stock Friday

Nvidia Corp NVDA stock is trading higher Friday as Daiwa Capital upgraded the stock from Neutral to Outperform and raised its price target from $408 to $475.

Analysts expressed their vote of confidence in the chipmaker's moat in sync with its CFO Colette Kress, despite the U.S.'s aggressive export controls on top of a preexisting embargo to restrict sales of some artificial intelligence chips to China. Analysts expected Nvidia to triumph ahead of its rivals Advanced Micro Devices, Inc AMD.

Raymond James Srini Pajjuri reiterated a Strong Buy on the stock with a price target of $450 following a virtual investor meeting with VP of IR Simona Jankowski. 

While management did not comment on near-term trends, the analyst walked away comfortably with his view that Gen AI adoption will continue to drive strong growth for the next several quarters. 

Due to strong demand from other markets, management does not expect a material impact from potential new China export controls in the near term.

Demand for Gen AI model Training at CSPs is giving the company strong visibility through year-end (previously stated), while Inferencing is also growing significantly due to LLM model complexity.

A100 demand is still strong, but the mix will shift to H100 over time, which could further help margins.

AI adoption across verticals drives interest in NVDA's full-stack offerings and foundation models.

Management is not overly concerned about competition, given its performance leadership and eco-system advantages.

The stock has gained close to 200% YTD outshining its rivals courtesy of the AI frenzy.

Price Action: NVDA shares traded higher by 4% at $424.53 on the last check Friday.

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