Nvidia, AMD shares jump as AI optimism spurs analyst price target hikes

Shares of Nvidia and Advanced Micro Devices (AMD) 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.

“With supply constraints, customers are often using the entire NVDA platform in order to get priority shipments of accelerators,” the Barclays analysts wrote, adding that 2024 is “the year AI begins to open up,” as other chipmakers like AMD gain market share.