Nvidia Stock Eyes New Highs Wednesday: What's Powering The Rally

The gravity-defying rally of Nvidia Corp. NVDA continues to play out after it closed at record highs for a second straight session on Tuesday. In premarket on Wednesday, the stock rose 1.13% to $537.38, according to Benzinga Pro data.

Analysts say that despite the runup seen in the stock since early 2023, it remains a buy. The consensus price target for the stock, according to TipRanks, is $662.39, suggesting scope for a 25% upside over the next year.

 Outlining the reasons for the outperformance, Gary Black, renowned for his bullish Tesla thesis, highlighted Nvidia's best-in-class products, excellent execution, a robust management team, a drama-free environment, and low headline risk.

See Also: How to Buy Nvidia (NVDA) Stock

Nvidia is currently the sixth most valued global company, and its exposure to artificial intelligence technology has fundamentally positioned it for continued outperformance. Nvidia and analysts currently model year-over-year revenue growth of about 230% for the December quarter.

While it released its third-quarter results, the company noted caution regarding the impact of the U.S. China chip ban. A new FT report suggested that Chinese companies were striving to repurpose chips from standard PC gaming products to develop artificial intelligence tools.

Also, reports said Nvidia is partnering with leading Indian business groups to set up data center facilities in India. This was announced by Nvidia’s Senior VP of Enterprise Business, Shankar Trivedi, at the 10th edition of the Vibrant Gujarat Global Summit.

Nvidia’s AI accelerator chipsets have become the sine qua non for AI applications and software developed the world over as the generative AI revolution takes hold.

Read Next: Jim Cramer Says Nvidia ‘Still Undervalued’ Despite 4% Jump To Record High