Nvidia Stock Jumps On Double Upgrade And 100% Hike To Price Target

Shares of chipmaker Nvidia Corp. NVDA were seen outperforming the broader market and peers in premarket trading on Tuesday.

The upward move came after HSBC upgraded the stock from Reduce to Buy and upped the price target from $175 to $355. The AI opportunity for the company more than offsets previous concerns about data center slowdown and rising inventory levels, the firm said, according to Investing.com

Nvidia has been among the beneficiaries of the AI revolution that is taking hold following the popularity of OpenAI's large-language model GPT and ChatGPT, the chatbot which uses the technology.

Nvidia's powerful chips power most of these models and therefore the stock is considered one of the best AI plays. The stock is among the best-performing mega-caps this year with nearly an 85% gain for the year-to-date period.

In premarket trading on Tuesday, Nvidia shares rose 2.27% to $276.15, according to Benzinga Pro data.

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