Nvidia stock price hits all-time high after BMO upgrade

Nvidia stock price hits all-time high after BMO upgrade

  • BMO Capital upgrades the stock to “outperform”, raises the stock price target to $425
  • Nvidia is “uniquely positioned” to continue benefiting from the booming data-center workloads
  • Shares of Nvidia surge 4%, hit a fresh record high above $350

Shares of Nvidia (NASDAQ: NVDA) have jumped 4% today to hit a fresh all-time high above $350 after BMO Capital Markets upgraded the stock to “outperform” from “market perform”. 

Fundamental analysis: Nvidia “uniquely positioned”

BMO Capital Markets upgraded Nvidia stock to “outperform” from “market perform” after describing the company as being “uniquely positioned” to continue to be the “prime beneficiary” of the data-center workloads.

“We have stayed on the sidelines long enough on the NVDA shares. We are raising our rating to Outperform from Market Perform and raising our target price to $425 from $285. While there is no one single event we can point to which has led us to change our thinking, the continued execution on the data center side, along with the latest product rollout, has helped,” BMO analysts said in a note. 

BMO also added a massive upgrade to Nvidia stock price target from $285 to $425, around 20% higher compared to the current market price. Analysts believe that Nvidia stock is entering a “beast mode”

“We believe NVIDIA is uniquely positioned to continue to benefit from a massive shift in the computer landscape”.

 “We do not see any reason why the company cannot grow its data-center business to at least a $20 billion annual run rate vs. the $4.8 billion we are modeling for this year,” BMO’s analyst Ambrish Srivastava said. 

Two days ago, Invezz reported that Nvidia was accused of issuing misleading statements on purpose to downplay the extent to which the firm’s sales relied on crypto miners in 2017 and 2018. 

Technical analysis: New record highs

Following the stock upgrade, shares of Nvidia have jumped higher to trade above the $350 mark for the first time ever. Nvidia stock has now gained more than 50% this year, while the S&P 500 trades 11% lower. You can learn more here on how to choose winning stocks.

Nvidia stock monthly chart (TradingView)

Nvidia needed less than 3 months to print a new all-time high, despite the fact that it had lost around 40% of value during the March selloff. This is a signal that investors are very bullish on Nvidia stock given they are using any excuse available to get on the long side. 

The buyers hit a first resistance just above the $350 handle today. The ultimate resistance is located at $400, where two important extensions are located. On the downside, any pullback to $315 will be seen as a buying opportunity.

Summary

Shares of Nvidia hit record highs today after the stock was upgraded to “outperform” by BMO Capital. Moreover, the target price for Nvidia stock was increased by nearly 50% – from $285 to $425.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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