Nvidia stock could rise another 23%

Experts believe that shares of chipmaker Nvidia could rise by another 23% due to growing interest in artificial intelligence and, as a result, an increase in demand for specialized equipment.

Bank of America raised Nvidia's target price from $310 per share to $340 with a «recommended for purchase» rating. The bank's analysts believe that the share price may rise to a one-year high, as the boom in artificial intelligence should support demand for the equipment produced by the company.

In general, Nvidia shares have jumped by 90% since the beginning of 2023 amid interest in AI, which, in turn, is fueled by the OpenAI ChatGPT chatbot.

The new target of $340 suggests a 23% increase in the company's shares compared to Tuesday's closing price of $276.67. The stock last traded above $340 in late November 2021, when it hit $346.47.

Experts also note that the use of AI in cloud/enterprise data centers can shift computing power/value towards specialized accelerators (such as NVIDIA GPUs and specialized Broadcom/Marvell chips). And this will lead to the rejection of traditional INTEL/AMD server processors based on the x86 architecture.