Nvidia (NASDAQ: NVDA) Shares of the company posted strong gains in trading on Monday. The artificial intelligence (AI) leader’s stock price climbed 4.1% during the daily session, according to data from S&P Global Markets Insights.
Nvidia shares benefited from today’s rally as investors and analysts reassessed the impact of a potential delay to the company’s upcoming first-generation Blackwell processors. The company’s stock price was also likely boosted by news that the graphics processing unit (GPU) leader had signed a new AI training agreement with the state of California.
Nvidia continues to rack up successes in the public sector
Nvidia stressed the importance of development AI Systems for countries. The company anticipates a dramatic increase in public sector spending to develop artificial intelligence systems as countries seek to strengthen their national defense capabilities and global sovereignty. The announcement of the new training partnership with California reflects similar dynamics at the U.S. state level. It wouldn’t be surprising to see Nvidia announce additional AI training agreements with other states in the near future.
Is Nvidia Stock On Track For Further Big Gains?
UBS UBS today issued a report on Nvidia, maintaining a Buy rating on the stock and a one-year price target of $150 per share. The artificial intelligence leader’s stock has seen volatile trading recently as investors weighed concerns over expectations that its first Blackwell processors could be delayed. With the company closing today’s daily session at about $109 per share, UBS’s price target suggests a near-term upside of about 38%.
The first releases of the Blackwell lineup are expected to provide a substantial leap in processing power and should be a major performance driver for Nvidia this year. In general, the market has also been nervous lately about valuations of mega-caps and major AI players. But the bank believes the tech stock is undervalued at current prices.
UBS believes that a possible delay in the commercialization of the first Blackwell processors could still lead to their commercialization by the end of January 2025. The bank’s analysts on the stock believe that overall demand for Nvidia processors will remain very strong. While some analysts predict that the AI leader’s profits will peak in the near term in 2025, UBS believes that profits will probably increase in 2026 as well.
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