- Nvidia’s shares were up over 3% on Tuesday.
- The virtual Nvidia GPU technology conference started on Monday.
- The chip maker is cementing its place in graphics processing while also recording a new revenue line in the AI field.
Even after a three-digit rally this year, graphics chip maker Nvidia’s stock isn’t done yet.
The company led the tech-heavy Nasdaq on Tuesday Profit of over 3%. The Nasdaq, meanwhile, is being pulled down by big tech giants like Apple.
The rise in NVDA coincides with that of the company GPU technology conferencethat is held virtually.
Since the virtual conference started on Monday, the inventory has increased by over 5%.
Since the beginning of the year, the share has increased by about 140%. The stock hit a record high early last month.
Why Nvidia’s shares keep climbing
Nvidia’s rally follows a number of developments that indicate the chipmaker’s good prospects. Several new products and partnerships were announced at the virtual conference.
While Nvidia is known for its GPUs that are popular in gamingThe virtual conference highlighted the company’s growing capabilities in terms of artificial intelligence.
Customers who are now using Nvidia’s AI technology include Microsoft and American Express. Microsoft is taking over Nvidia AI in Azure, which is used, among other things, for grammar correction and text prediction in Microsoft Office.
Nvidia AI was introduced at American Express to prevent fraud and thwart cyber crime.
Nvidia is also introducing a new AI starter kit for hobbyists, students and educators.
Nvidia AI helps with pharmaceutical research
At the virtual conference, the company announced that it has signed a contract with British pharmaceutical giant GlaxoSmithKline to use its computing and technology for artificial intelligence data-driven drug discovery.
In addition, Nvidia is in the process of building the UK’s most powerful computer to be made available to healthcare researchers.
Other announcements include new computing devices specifically tailored for use in data centers.
The most recent spike has been less than a month since Nvidia announced it Acquisition of chip designer Arm from Softbank for $ 40 billion.
It is that largest semiconductor deal and is expected to boost Nvidia’s data center business.
Analysts raise share price target
The rise in NVDA followed BMO Capital raised its target price for the stock from $ 565 to $ 650. The price increase is based on the belief that Nvidia’s business is “in full swing”.
Other analysts are just as optimistic. Evercore ISS analysts see “enormous growth potential” for many more years to come.
Among the 37 analysts currently covering the stock, The consensus rating is overweighted.
The highest price target is USD 700, which corresponds to an upside potential of over 25%.