Chip giant Nvidia (NASDAQ:NVDA) has joined forces with Foxconn, the largest electronics manufacturer, to build AI (Artificial Intelligence) factories. These AI factories will be powered by Nvidia’s latest GH200 Grace Hopper Superchip and NVIDIA AI Enterprise software.
Foxconn will integrate Nvidia’s technology to create new data centers supporting various industrial applications. This encompasses the development of AI-powered EVs (Electric Vehicles) and robotics platforms, and the digitization of manufacturing and inspection processes, among others.
Further, Foxconn will leverage Nvidia’s CPUs (Central Processing Units), GPUs (Graphics Processing Units), and networking solutions to create an extensive range of systems for its customers seeking to develop AI-driven factories. In addition, Foxconn will offer NVIDIA DRIVE solutions to global automakers featuring the new NVIDIA DRIVE Hyperion 9 platform, which incorporates sophisticated sensor architecture and DRIVE Thor.
Nvidia has been leading the AI space with its accelerated computing platform. As the deployment of AI becomes more widespread, Nvidia, with its most advanced and high-performing chips, is poised to capitalize on the demand.
With this backdrop, let’s look at what the Street recommends for NVDA stock.
Is Nvidia a Buy or Hold?
Thanks to the AI-driven demand, Nvidia continues to deliver strong financial results, which has pushed its stock price higher. NVDA stock has gained over 200% year-to-date, which has raised concerns regarding its valuation. Further, the impact of the new U.S. export restrictions to China on Nvidia and other chip makers remains to be seen.
Nonetheless, Wall Street analysts maintain an optimistic outlook about Nvidia stock as the demand for its accelerated computing and AI platforms provides a multi-year growth platform for the company.
Meanwhile, Morgan Stanley analyst Joseph Moore and Bernstein analyst Stacy Rasgon continue to show confidence in NVDA stock despite new export curbs. Moore maintained a Buy rating on the shares of Nvidia but lowered the price target to $600 from $630 on October 17.
Overall, Nvidia stock has 37 Buys and one Hold for a Strong Buy consensus rating. Moreover, analysts’ average price target of $649.67 implies 47.86% upside potential from current levels.
