Analysts Boost Nvidia's Stock Outlook, Predicting a 28% Rise

While Nvidia (NVDA, Financial) is a symbol of the success of the market, currently worth $3.4 trillion, the saying can be heard among analysts who follow the chipmaker that too much success impairs judgment can affect. According to Street Pro Portfolio analyst Chris Versace, who raised his price target on the stock from $155 to $175 last Friday, Nvidia has posted record profits this year, but technical analysis suggests otherwise more upside potential in the next twelve months.

So far this year, Nvidia's share is up nearly 179%, including a 13.6% increase in October. This makes the company one of the market leaders in terms of market capitalization, just behind Apple and ahead of Microsoft. The price target change comes as Nvidia continues to benefit from increasing adoption of artificial intelligence, an area where the company's semiconductors and software are considered critical.

That's Versace's new target, pointing to a boost in confidence coming from Nvidia's strong quarters and its position in a sector moving more toward AI-based technology. With the stock trading at $138, close to its optimum, the company's shareholders are poised to enjoy a year of growth that is likely well above most industry peers.

With Nvidia on track for another record-breaking and financially lucrative year, people are closely watching the company's future moves in the artificial intelligence space to track the path that will lead to the stock continuing to soar and potentially record highs in the years to come months.

This article first appeared on GuruFocus.