Nvidia shares are on the rise after experiencing a slight dip the previous day. As of premarket trading, the chip maker's stock is up 1.5% at $737.25.
Despite closing 1.7% down at $726.58 on Thursday, Nvidia shares have seen an impressive 47% increase this year.
In anticipation of Nvidia's upcoming earnings report on Feb 21, Oppenheimer analyst Rick Schafer has raised his target price on the stock from $650 to $850, maintaining an Outperform rating.
Schafer predicts a 22% rise in Nvidia's data-center revenue for the January quarter compared to the previous quarter. He also highlights the importance of updates on the company's sales in China, given the limitations on advanced chip exports.
According to Schafer, several factors, such as generative AI, DC/AI accelerators, and autonomous vehicles, will drive sustained top-line growth for Nvidia. He believes that these factors validate the company's current valuation.
Nvidia is not the only chip maker experiencing a positive market trend. Advanced Micro Devices saw a 0.9% increase in premarket trading, while Intel showed a modest 0.4% increase.
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