One of the biggest developments to start off this week is NVIDIA’s (NASDAQ:NVDA) 10-for-1 stock split, and top analysts are weighing in on the action.
The tech giant completed its 10-for-1 stock split on June 7 and is set to begin trading on a split-adjusted basis today. As a result, NVIDIA shares are trading at $120.79 in the premarket session today, compared to the stock’s $1,208.9 closing price on Friday.
Wall Street Remains Optimistic About NVIDIA
Amid this excitement around NVIDIA, Barclays’ Thomas O’Malley, a 5-star rated analyst on TipRanks, has reiterated a Buy rating on the stock alongside a $145 price target. This points to a nearly 20% potential upside in the stock. The other analyst weighing in on NVDA over the weekend is TD Cowen’s Matt Ramsay, with a Buy rating and a $140 price target. Earlier, Mizuho’s Vijay Rakesh also reiterated a Buy rating on NVIDIA alongside a $127.50 price target.
At the time, Rakesh noted NVIDIA’s unparalleled dominance in the AI hardware landscape. The analyst sees promising opportunities for the company thanks to its Hopper platform, Blackwell B100/200 GPUs, and Rubin chips. Remarkably, NVIDIA is planning to sell its AI chips at an impressive net profit margin of over 50% per chip. This points to the company’s pricing power in the market. Consequently, shareholders have duly rewarded the company with a mega 206% rally in its stock price over the past year.
Is NVIDIA a Buy, Sell, or Hold?
These price gains have propelled NVIDIA’s market capitalization to nearly $3 trillion, and today’s stock split could ensure that the rally keeps going. After all, a lower price per share makes the stock more affordable and, shall we say, more attractive, for retail investors. In sync, the TipRanks Technical Analysis tool is also flashing a Buy signal for NVDA stock on a monthly timeframe. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average NVDA price target of $122.69.
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