Key Takeaways
- Chipmaker Nvidia’s shares closed slightly higher on Monday following the company’s 1-for-10 stock split, and several analysts raised their price targets for the stock.
- Analysts at Barclays, Susquehanna and TD Cowen raised their split-adjusted price targets for NVIDIA shares from their previous targets.
- The split-adjusted price could make the stock more accessible to a wider range of investors, with Morgan Stanley analysts highlighting that NVIDIA shares are more affordable than those of Advanced Micro Devices.
Nvidia (NVDA) shares closed up 0.8% at $121.79 on Monday, the first day of split-adjusted trading following a 1-for-10 stock split, and several analysts raised their price targets for the company’s stock.
Analysts at Barclays raised their post-split target price to $145 from a split-adjusted $120, or $1,200 pre-split. Analysts used the opportunity to reiterate their view that Nvidia will see revenue from artificial intelligence (AI) products gradually increase and will be able to benefit from its own AI.
Analysts at Susquehanna and TD Cowen also reportedly raised their split-adjusted price targets for Nvidia shares from their previous targets, citing their confidence in the company’s strength.
Nvidia’s split-adjusted stock price could make it more affordable for a broader range of investors to own. Morgan Stanley analysts noted that Advanced Micro Devices (AMD) stock is currently trading at a higher price than Nvidia’s, which they said “increases confidence in Nvidia’s upward revision of its AI forecast.”
Increased demand for shares at a lower share price could drive the AI darling’s stock even higher.
