Nvidia stock is headed for a fifth day of gains as Wall Street remains bullish on AI

Nvidia stock (NVDA) rose more than 3% in afternoon trading on Tuesday, posting its fifth straight day of gains.

Wall Street analysts at KeyBanc, Citi (C), Bernstein and several other investment firms reiterated their buy ratings on the stock this week.

Analysts at KeyBanc raised their fiscal 2025 revenue forecast for Nvidia to $130.6 billion from $128.5 billion, with Nvidia's new flagship AI chips Blackwell adding $7 billion to fourth-quarter sales contribute. That's higher than Wall Street's consensus estimate of $125.6 billion for revenue in 2025, according to Bloomberg data. Even as production of Nvidia's Blackwell chips ramps up, KeyBanc said in a note to investors on Monday Demand for Nvidia's previous AI chip models – H100s and H200s – “remains extremely robust.”

Nvidia shares are up 13% in the past week and 189% year-over-year.

Wedbush analysts said “another positive data point” for Nvidia is a possible new wave of funding for AI startups. The Information reported on Monday that OpenAI's stunning $6.6 billion funding round is likely to spark a wave of new AI investments. New funding for AI-related start-ups would in turn boost demand for Nvidia's AI chips.

Wedbush's Matt Bryson said Tuesday that the report is an indication “that there is little chance that AI spending growth will pause in favor of NVDA for much of (if not all of) 2025.”

Nvidia wants to prove its value beyond AI hardware. At its AI Summit in DC this week, the company is trying to highlight the strength of its AI software offerings to prove it's more than just a chipmaker.

Adding to the wave of positive press for Nvidia was the announcement of Foxconn's new mega-factory where Nvidia's AI servers will be assembled. Electronics maker Foxconn (2354.TW) Chairman Young Liu said during an annual event in Taipei on Tuesday that the company is building the world's largest factory to assemble Nvidia GB200 servers in Mexico, according to the Financial Times. Liu said there is “crazy” demand for Nvidia’s latest AI chips. The move will reduce Nvidia's dependence on China amid rising trade tensions.

Nvidia and Foxconn announced that they are also working to build Taiwan's fastest supercomputer.

Nvidia isn't the only semiconductor company thriving. Citing WSTS data on the semiconductor industry, JPMorgan (JPM) said Tuesday that industrywide sales rose 28% in August from a year earlier.

“We remain positive on semiconductor and semiconductor equipment stocks as we expect the stocks to grow in anticipation of better supply/demand in 2H24/25 (the second half of 2024 and 2025) and stable/increasing earnings power trends in fiscal 2024/25 should continue to rise (the calendar years 2024 and 2025).”

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The PHLX Semiconductor Index (^SOX) and the tech-heavy Nasdaq (^IXIC) both rose more than 1% on Tuesday.

Meanwhile, chipmakers in China faced a different fate on Tuesday. China's Semiconductor Manufacturing International Corporation (0981.HK) plunged 18% after China's economic planning agency failed to meet market hopes for further stimulus measures. Investors had expected stimulus initiatives to boost China's semiconductor sector.

Laura Bratton is a reporter for Yahoo Finance.

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