By Chibuike Oguh
NEW YORK (Reuters) – Shares of Nvidia and Advanced Micro Devices jumped on Tuesday as investor optimism over the prospects of higher demand for artificial intelligence (AI)-powered chips prompted Wall Street analysts to hike their price targets for the semiconductor giants.
Nvidia currently has a dominant position in the market for advanced AI chips, but AMD is expected to gain ground this year as the company increases deliveries of its own chips to enterprise customers, Barclays analysts led by Tom O’Malley said in an investor note.
Nvidia’s stock rose 3.4% to $565.60 and hit a new record high, while shares of AMD surged 8.2% to $158.64, rising to their highest level in more than two years. The value of Nvidia’s shares more than tripled last year, making it the world’s most valuable chipmaker, while those of AMD more than doubled.
Barclays raised its price target for AMD shares to $200 from $120, while KeyBanc analysts raised theirs to $195 from $170. Nvidia also got a price target hike to $740 from $650 from KeyBanc.
(Reporting by Chibuike Oguh in New York; Editing by Lance Tupper and Nick Macfie)
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