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TD Cowen analysts hiked their price target on Nvidia stock from $600 to $700 despite its 226% year-to-date rally.

Despite its remarkable ascent in 2023, Nvidia (Nasdaq: NVDA) has a lot left to offer in terms of stock market performance, according to strategists at TD Cowen. As such, the strategists hiked the price target on the stock from $600 to $700 and maintained their Outperform rating. 
 

TD Cowen Sees 50% More Upside for Nvidia

Nvidia (Nasdaq: NVDA) staged a remarkable stock market performance in 2023 amid an unprecedented AI boom. However, one team of analysts believe the chipmaker’s rally is far from over, hiking their price target on the stock. 

Notably, TD Cowen analysts led by Matthew Ramsay reiterated their Outperform rating on Nvidia’s shares and raised the price target on the chip giant from $600 to $700 in their latest note. Nvidia’s shares slightly climbed in the Thursday premarket. 

With the new price objective, TD Cowen strategists imply a 50% further upside in Nvidia (Nasdaq: NVDA) compared to their current market price. 

“We believe the industry is in the early innings of two transformational paradigm shifts toward ubiquitous acceleration and generative artificial intelligence, with Nvidia’s wide moat potentially expanding.”

– Cowen’s strategists wrote.

Nvidia’s stock closed 2.2% higher on Wednesday at $486.06, marking a fresh monthly high. The chip manufacturer overperformed the broader S&P 500 index, which fell around 1.9% during that period.
 

AI Boom Made Nvidia a $1 Trillion Company

TD Cowen’s vote of confidence in Nvidia comes from a stellar performance this year that turned the chipmaker into a business worth over $1 trillion.

The stock gained more than 226% since the start of 2023, riding on the ongoing explosion in the AI sector prompted by the emergence of ChatGPT and other similar products capable of generating impressive text, photo, and video content. When it comes to Nvidia, its role in this boom is vital because it is a leading manufacturer of specialized chips that power generative AI. 

Apart from the chipmaker, the rest of ‘The Magnificent Seven’ Big Tech companies also thrived on the current AI frenzy, particularly Facebook owner Meta Platforms (Nasdaq: META). These seven tech giants are the biggest drivers of the S&P 500’s resurgence in 2023, driving over 50% of its year-to-date rally. 

Other stocks that received a boost from the AI expansion include chip archrivals Intel (Nasdaq: INTC) and AMD (Nasdaq: AMD), enterprise AI startup C3.ai (NYSE: AI), and high-performance server computer maker Super Micro Computer (Nasdaq: SMCI).

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