Raymond James raises Nvidia’s price target, chip stocks are gaining momentum

Nvidia’s stock has room for improvement since the recent breakout, as the company is poised to improve in several areas, according to Raymond James.

Shares of the semiconductor company have jumped 23% in the last month, after looking neutral for most of the past year. The growth of the industry has been hampered by a shortage of supply chain, which is reflected in the limited supply of some consumer products, such as cars and laptops.

Raymond James analyst Chris Caso has raised Nvidia’s price target to $ 900 per share from $ 750, saying on Tuesday that the company was showing signs of strength in a number of product categories. represents 22% above the price where the shares closed on Monday.

Previously, there was a drop in demand for Nvidia when cryptocurrency prices fell due to its gaming chips used in mining. Since then, however, the company has changed its products to discourage this, and Raymond James says switching and global chip shortages should isolate it from recent volatility.

Interest from gamers who have not been able to get their hands on products for 9 months will boost sales and the main demand for games seems to remain stable.

The price moves in a bullish trend channel and is over 50 MA, we also see a break and test of the trend on its upper side, after which it continues its upward movement.

In the event of a reversal of the movement, we should see a possible test of the trend, and in the event of a breakout, test in the support area around $ 650 again.