Nvidia was climbing Friday to finish its first week following its stock split. The chip maker has risen ahead of Wall Street’s consensus targets for the stock.
Nvidia shares were up 2.2% at $132.48 on Friday. The stock closed up 3.5% on Thursday.
Nvidia’s 10-for-1 stock split took effect a week ago and the stock is now ahead of Wall Street’s…
Nvidia was climbing Friday to finish its first week following its stock split. The chip maker has risen ahead of Wall Street’s consensus targets for the stock.
shares were up 2.2% at $132.48 on Friday. The stock closed up 3.5% on Thursday.
Nvidia’s 10-for-1 stock split took effect a week ago and the stock is now ahead of Wall Street’s average price target of $123.35, according to FactSet.
Nvidia’s strong rally has seen it outpace analysts’ expectations on multiple occasions during the AI rally. The company’s forward price-to-earnings multiple currently stands at around 43 times.
That’s not putting off the bulls. Oppenheimer’s Rick Schafer reiterated a $150 price target on the stock in a research note this week, based on a multiple of 36 times Nvidia’s forecast earnings in 2026.
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“We see several structural tailwinds driving sustained outsize top-line growth including generative AI, DC [data center]/AI accelerators and autonomous vehicles. We believe these factors justify its valuation,” Schafer wrote.
A raft of positive earnings reports this week from companies set to benefit from the artificial-intelligence boom such as
and
appear to have kept confidence high regarding demand for Nvidia’s chips.
The stock might also have benefited from bets that Nvidia’s weighting in the $70 billion
Technology Select Sector SPDR ETF
will have to be increased. The ETF is scheduled to rebalance its holdings on June 21, based on stocks’ closing prices for Friday. If Nvidia’s market value is larger than that of either
or
Apple
,
it could take their spot as one of the fund’s top two holdings, triggering an allocation of more than 20%, from just 5.7% currently.
Nvidia shares have risen 162% this year to date through to Thursday’s close. That compares with a 14% increase for the
and a jump of 18% in the
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over the same period.
Write to Adam Clark at adam.clark@barrons.com
