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Key Takeaways
Nvidia shares rose on Monday as semiconductor stocks rebounded, helping to lift the S&P 500 and Nasdaq.
The chipmaker is reportedly producing versions of artificial intelligence chips for the Chinese market that comply with US trade restrictions.
The news comes after semiconductor stocks fell last week on concerns that increasing trade restrictions and geopolitical tensions could have a negative impact on the industry.
Several analysts raised their price targets for Nvidia shares on Monday, anticipating strong earnings from the chipmaker next month and demand for its products.
Shares of Nvidia (NVDA) rose in intraday trading on Monday as semiconductor stocks recovered from losses during last week’s sell-off, lifting the S&P 500 and Nasdaq.
Concerns over tighter trade restrictions and geopolitical tensions fuelled a sell-off in semiconductor stocks last week, but shares rose amid reports that Nvidia was making versions of its artificial intelligence (AI) chips for the Chinese market that were compliant with U.S. trade restrictions.
Several analysts also raised their price targets for Nvidia shares on Monday, anticipating strong earnings from the chipmaker next month and demand for its products.
NVIDIA stock target rises
Analysts at Piper Sandler reportedly raised their price target on Nvidia shares to $140 from $120, citing strong demand for the company’s products and a growth catalyst in Nvidia’s second-quarter earnings report, scheduled for Aug. 28. Analysts at Loop Capital also raised their price target to $175 from $120.
Nvidia shares rose about 2.5% to $120.86 as of about 11:30 a.m. ET on Monday, more than doubling in value since the beginning of the year.
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