Nvidia (NVDA) shares are trading in green this morning after the company said its GPUs are โa generation aheadโ of Googleโs (GOOGL) tensor processing units (TPUs).ย
The remarks arrive on the heels of media reports that Meta Platforms (META) is considering switching to Alphabetโs custom AI chips to power its data centers by 2027.ย
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Despite todayโs gain,ย Nvidia stock is down some 15% versus its year-to-date high set in late October.
Does Nvidiaโs Reassurance Warrant Buying Nvidia Stock?
NVDA shares are inching higher today because the companyโs comment reinforces the titanโs dominance in the AI chips market.ย
It feeds right into industry expert Gene Musnterโs view that a rival designing a better chip than Nvidia โis not even in the equationโ for another year or two.ย
The remarks also made Bernstein reiterate its โOutperformโ rating on theย AI stock on Nov. 26, saying โdata center opportunity is enormous, and still early, with material upside still possible.โ
Stacy Rasgon โ the firmโs senior analyst โ has a $275 price target on Nvidia stock, which indicates potential upside of a whopping 50% from current levels.ย
Backlog Strength Warrants Owning NVDA Shares
Nvidia shares are worth owning also because Jensen Huang downplayed AI bubble concern on the earnings call last week, saying โwe see something very different.โ
The artificial intelligence stock looks headed to challenge its 50-day moving average (MA) at the $186 level on Wednesday.ย
A break above this price could further accelerate upward momentum in the near-term, which looks likely givenย options data is currently pointing to a rally past $200 by late February.ย
Investors should also note that NVDA has already booked about half a trillion dollarsโ worth of AI chip orders. In terms of revenue visibility, itโs really as good as it gets.ย
Nvidia Remains a Wall Street Favorite Heading into 2026
Wall Street more broadly continues to see NVDA stock as a core long-term holding as well.ย
The consensus rating on Nvidia shares remains at โStrong Buyโ with the mean target of about $252 indicating potential upside of another 40% through the end of 2026.ย
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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