Citi Lifts Nvidia Price Target
Markets guru Larry McDonald took a dig at Citi, which raised its price target for Nvidia's stock following its rally of over 200%.
"The clown show rolls on," McDonald said, seemingly mocking Wall Street's tendency to follow the market rather than lead it.
Last year, Citi had trimmed its price target for Nvidia, citing a decline in gaming demand.
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Citi just boosted its price target for Nvidia's stock – but markets guru Larry McDonald isn't impressed.
"The clown show rolls on - cut the price target on the lows - raise the price target on the highs - sell side 'research,'" markets guru and founder of "The Bear Traps Report" said in a tweet on Monday.
He seemed to suggest it's typical for Wall Street analysts to simply raise targets once shares rally and cut them when prices have already fallen -- thereby following the market rather than leading it. Citi's move to raise its target for Nvidia follows a massive year-to-date rally of more than 200% for the chipmaker.
The New York-based bank lifted its goal for Nvidia shares to $520 apiece from $420 earlier, with analyst Atif Malik adding the semiconductor company's stock could surge as high as $600.
Shares in the Santa Clara-based firm rose 2.81% to $464.61 on Monday.
"To us, it is clear the market for [artificial-intelligence] accelerators is bound to grow at a blistering pace," he said in a note, per MarketWatch. He added that Nvidia will have "a substantial advantage in AI performance versus AMD going forward," that'll see the company hold about a 90% share of the AI accelerator market.
Citi has flip-flopped on its forecasts for Nvidia. Last year, the bank slashed its price target for the chipmaker to $285 a share on faltering gaming demand, per several outlets.
Nvidia has stunned investors this year with an eye-popping 218% surge, thanks to a boom in artificial intelligence technologies. The rally has pushed Nvidia into the elite $1 trillion market cap club for the first time.
The sizzling stock gains have also pumped up the wealth of the company's CEO Jensen Huang to $39.2 billion, making him the 34th richest person in the world, per the Bloomberg Billionaire's Index.
Source: Markets Insider
