Nvidia moves back toward $3 trillion as Barclays slaps NVDA with bullish $145 price target


  • Nvidia trades at new split-adjusted price on Monday.
  • NVDA underwent a 10-for-1 split last Friday.
  • Nvidia regained $3 trillion valuation following Barclays client note.
  • Advanced Micro Devices receives downgrade from Morgan Stanley.

 

Nvidia (NVDA) is enjoying its first session following its 10-for-1 stock split on Monday with shares rising more than 1% midday to push the semiconductor powerhouse back to a $3 trillion market cap.

Barclays bank produced a client note calling $145 per share its 12-month price target, a 20% premium on the current price.

The US equity market gained in the afternoon following a morning sell-off. Most traders look forward to Wednesday’s twofer with the Consumer Price Index (CPI) and Fed’s interest rate decision/dot plot arriving in the same session.

Nvidia stock news

Shares of Nvidia stock closed last Friday at $1208.88 and opened on Monday at the new split-adjusted price at $120.38. NVDA shares then crested toward $123 on the Barclays news.

Barclays analyst  Tom O'Malley said that Nvidia was first in line for a $25 billion opportunity from sovereign nations intent on fortifying their own national capabilities using  Nvidia’s artificial intelligence-focused GPU chips.

O’Malley said this could be a $25 billion opportunity and that he foresees $157.1 billion in fiscal 2026 revenue, as well as $0.61 in additional earnings per share. Nvidia’s fiscal calendar is a year ahead of the calendar, so this would refer to next year’s prospects.

Compared with existing analysts, O’Malley expects Nvidia to earn 7 cents better than the existing $3.55 per share consensus for fiscal 2026.

Nvidia’s positive review from Barclays was matched with a reticent one from Morgan Stanley in regard to Advanced Micro Devices (AMD). The analysts at the bank said projections were too rosy for AMD’s AI business.

"We like the AMD story, but investor expectations for the AI business still seem too high to us," wrote analysts in the investor note. "AMD looks expensive relative to other large cap AI plays NVDA and AVGO where we have more confidence on upward revisions to AI forecasts."

Morgan Stanley retained its $176 price target on AMD but moved it from Overweight to Equal Weight. AMD stock traded down more than 4% on Monday.


 

Semiconductor stocks FAQs

A semiconductor is a term for various types of computer chips. Officially called semiconductor devices, these computer chips rely on semiconductor materials like silicon and gallium arsenide to process the electrical current that produces the modern world of computing. They come in many shapes, sizes, enhancements and configurations such as diodes, transistors and integrated circuits to more complicated applications like DRAM memory, simple processors and even GPUs.

First, there are the pure chip designers, such as Nvidia, AMD, Broadcom and Qualcomm. These companies use sophisticated software to design and test chips. Second, there are the equipment manufacturers that provide the machines necessary to build computer chips. These include ASML and Lam Research. Then, there are foundries that manufacture the chips. These include Taiwan Semiconductor and GlobalFoundries. Last of all are the integrated device manufacturers who design their own chips and additionally manufacture themselves. These include Samsung and Intel.

It is the observation that the number of transistors in an integrated circuit doubles every two years. The “law” is named after Gordon Moore, who founded Fairchild Semiconductor and later Intel. The doubling is possible due to the shrinking size of process nodes or parts in the computer chip. In 1971 the advanced commercial manufacturing had reached 10 microns in width. In 1987 semiconductor technology had advanced to 800 nanometers in width. By 1999, this process had moved to 180 nanometers. By 2007, the size had dropped to 32 nanometers, and this fell all the way to 3 nanometers in 2022, which is close to the size of human DNA.

In 2022, the global semiconductor industry had revenues just under $600 billion. In total, the industry shipped 1.15 trillion semiconductor units in 2021. The leading nations involved in the semiconductor supply chain are Taiwan, the United States, China, the Netherlands, South Korea, Japan and Israel.

Nvidia stock forecast

Nvidia stock is a bit overextended, based on the Relative Strength Index (RSI) on the daily chart below. It's largely remained that way for the past three weeks. When you account for appoximately 90% of the AI chip market, things can stay that way.

There's a resistance level at $96 that could turn into support if need be, as well as stronger, long-term support from February and April in the $74 to $77 range. Most traders will buy the dip, however, at least until NVDA breaks below the 20-day Exponential Moving Average (EMA), which is now in the high $108s.

NVDA daily stock chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends slide below 1.0700 on stronger USD, EU political angst

EUR/USD extends slide below 1.0700 on stronger USD, EU political angst

EUR/USD stays under bearish pressure and trades at its lowest level since early May below 1.0700. Unabated US Dollar demand amid risk aversion and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.

EUR/USD News

GBP/USD slumps to multi-week lows below 1.2700

GBP/USD slumps to multi-week lows below 1.2700

GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.

GBP/USD News

Gold clings to recovery gains at around $2,330

Gold clings to recovery gains at around $2,330

Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.

Gold News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

Read more

Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap

Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap

It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.

Read more

Forex MAJORS

Cryptocurrencies

Signatures