Bank of America raised its price target on Nvidia (ticker: NVDA) to $275 from $260. Analyst Vivek Arya maintained his Buy rating on the stock, saying in a note, which included a more prominent call on the sector, that confident chip makers benefit from pricing power and “disciplined supply.”
Arya also maintained Buy ratings on Microchip Technology (MCHP) and KLA Corp. (KLAC) and raised the price targets on both: Microchip to $185 from $170; KLA to $450 from $425, saying it sees “limited potential upside relative to our [price target]compared to other stocks in our coverage.”
Trust Securities, meanwhile, said Nvidia remains the firm’s “best large-cap growth idea.” Analysts led by William Stein said they recently hosted an in-person meeting with Colette Kress, the company’s chief financial officer, and while “we do not believe NVDA made any new material disclosures …we gained incremental conviction on growth drivers in gaming, (reduced risk of crypto overhang), pro-viz, datacenter, and automotive.”
Trust raised its price target on the stock to $257 from $230.
Forty-one analysts surveyed by FactSet rate the stock at Overweight with an average price target of $230.52. The optimism didn’t help Nvidia stock Friday. Shares closed lower by 1.54% to $219 and have declined 2.57% over the past five days. Still, the stock has gained almost 68% so far in 2021.
Investors have eagerly awaited a European Union ruling next month on Nvidia’s $40 billion plan to buy the chip technology maker Arm. The EU has set Oct. 13 as the deadline to decide Nvidia’s plan to purchase Arm.
“We are working through the regulatory process, and we look forward to engaging with the European Commission to address any concerns they may have,” Nvidia said in a statement earlier in September. “This transaction will be beneficial to Arm, its licensees, competition, and the industry.”